Gold prices showed continued selling pressure during today's trading, remaining below the psychological level of $4,500 per ounce, amid continued strength of the US dollar and rising expectations of tightening US monetary policy.
Geopolitical tensions between the United States and Iran continue to support demand for the dollar as a safe haven, especially with the continued uncertainty about the chances of reaching a final agreement between the two sides, which has negatively impacted the performance of gold.
The rise in oil prices near their highest monthly levels also contributed to increased inflationary concerns, which strengthened market bets that the US Federal Reserve might continue to adopt a tight monetary policy and raise interest rates in the coming period.
Markets are awaiting the release of the minutes from the US Federal Reserve meeting, which may provide important indications regarding the future of interest rates and the course of monetary policy, which will directly affect the movements of gold and the dollar in the coming period.
On the technical side, gold's continued trading below $4,500 reinforces the negative outlook in the short term, with the $4,363 level remaining a key support level representing the 200-day moving average. Breaking this level could open the way for further declines, while holding above it could allow for a return to relative price stability.
Markets remain highly sensitive to any new political or economic developments, especially those related to geopolitical tensions, US inflation data, and Federal Reserve actions.