Gold Outlook Weak as Trump's Hormuz Signals Keep Pressure on Prices

limited,Gold is trying to recover after a sharp fall, but the bounce looks weak and may be a dead cat bounce. Options traders are still positioning for more downside, which supports a bearish outlook.

Oil prices remain high and the US dollar is strong, mainly because tensions around the Strait of Hormuz continue and reopening it is still uncertain. Comments from Donald Trump about possibly ending the conflict without reopening Hormuz suggest inflation risks could stay elevated, which is negative for gold.

Technically, gold is struggling near 4,700 resistance. If prices move lower again, the next important support levels are 4,100 and then 4,000, which remains the main downside target.

XAU/USD Weekly Chart

Bottom line:

Unless a strong risk-on move or Hormuz reopening improves sentiment, gold upside may stay limited, and the risk of another drop toward 4,000 remains high.