Gold Holds in $4,400–$5,000 Range While Geopolitics Drives Direction

After the US–Iran talks in Islamabad ended without a deal, gold may start to weaken further. The Strait of Hormuz is unlikely to reopen soon, which could keep oil prices high, lift inflation expectations and bond yields, and add pressure on gold and risk assets. Markets may react strongly to Middle East headlines again this week.

Gold’s recent rebound from around $4,100 was supported by a weaker US dollar and lower yields, but right now, geopolitics is the main driver, while economic data matters less.

Technically, $4,800 to $4,850 remains a strong resistance. A break above this area could open the way toward $5,000. Support levels are $4,700, $4,600, $4,550, and $4,400 as the key support. Overall, gold is likely to stay range-bound between $4,400 and $5,000 for now, with trading expected to remain headline-driven until a clear breakout happens.

XAU/USD Daily Chart