Gold Waits for Direction as Middle East Risks Keep Markets Cautious

Gold remains in a wait-and-see phase as rising tensions around the Strait of Hormuz continue to influence oil prices, the US dollar, and bond yields. Although gold briefly dropped, it recovered toward last week’s closing levels, showing markets are still cautious rather than fully risk-off.

Technically, gold is facing strong resistance between $4,800 and $4,850. A daily close above $4,850 could confirm a bullish move toward $5,000, especially if negotiations improve and risk sentiment strengthens. On the downside, support levels to watch are $4,750, $4,600, and $4,500, with $4,400 remaining the key level that keeps the longer-term bullish trend intact.

XAU/USD Daily Chart

Overall, gold’s next move will depend mainly on developments in Middle East tensions, oil prices, inflation expectations, bond yields, and the strength of the US dollar. Until there is clearer progress on negotiations, price action is likely to remain volatile and headline-driven.