Key Moments
- Gold (XAU/USD) slid about $150 intraday after touching a new two-week peak near $4,800.
- Heightened tensions around Iran and the Strait of Hormuz supported the US Dollar and US Treasury yields.
- Technical signals on the 4-hour chart point to fading upside momentum, with key support near $4,600.
Middle East Tensions Fuel Dollar Bid and Hit Gold
Gold (XAU/USD) came under heavy pressure on Thursday after briefly reaching a new two-week high around $4,800 during Asian trading. The move reversed a four-session advance and left the metal on the defensive as demand for the US Dollar (USD) strengthened.
In a national address, US President Donald Trump warned that Iran would be hit extremely hard over the next two to three weeks and “would be brought to the Stone Age if no deal is reached.” These remarks cooled expectations for any near-term easing of tensions in the Middle East, dampened risk appetite, and reinforced the USD’s appeal as the leading reserve currency, to the detriment of Gold.
Trump also stated that Iranian energy infrastructure remains a potential target. Separately, the Wall Street Journal reported on Tuesday that the United Arab Emirates (UAE) is advocating for military action to reopen the Strait of Hormuz and is pressing for a UN Security Council resolution to authorize such an operation. The prospect of supply disruption helped trigger a sharp upswing in Crude Oil prices, intensifying inflation worries and underpinning expectations for another interest rate increase by the US Federal Reserve (Fed).
Higher Fed rate hike bets pushed US Treasury yields higher, further bolstering the USD and weighing on the non-yielding precious metal.
Gold Price Action and Sensitivity to Geopolitics
From its intraday high in Asia, Gold retreated by roughly $150, reflecting the market’s swift reaction to the latest geopolitical headlines. Volatility is expected to stay elevated as investors track developments in the ongoing Middle East conflict.
Given Gold’s heightened sensitivity to news from the region, the immediate response to the upcoming US Nonfarm Payrolls (NFP) report on Friday is anticipated to be more muted than usual. Even so, the broader setup argues for prudence before betting on a sustained continuation of the recent rebound from the $4,100 area, which marked a four-month low last week.
Technical Overview: Bears Regain Control Below 200-Period EMA
From a technical standpoint, Thursday’s rejection near the 200-period Exponential Moving Average (EMA) – a former support level now acting as resistance on the 4-hour chart – and the failure to hold above the $4,800 region favor a bearish near-term outlook for XAU/USD.
The Relative Strength Index (RSI) has retreated back toward the mid-50s after briefly pushing into overbought territory above 70. At the same time, the Moving Average Convergence Divergence (MACD) indicator has pulled back from recent highs. Together, these signals indicate waning upside momentum rather than a confirmed trend reversal at this stage.
Additional selling pressure could draw the metal toward the next support area near $4,600, where previous demand intersected with the latest pause in upside momentum. A decisive break below $4,600 would expose the $4,550 region.
On the upside, initial resistance is seen at the recent swing high around $4,787. A move above this level would bring the $4,820–$4,830 band into focus, where the 200-period EMA on the 4-hour chart is reinforcing a more robust resistance zone.
(The technical analysis of this story was written with the help of an AI tool.)
US Dollar Performance Against Major Currencies
The US Dollar showed broad-based strength in today’s session, posting its largest gains versus the New Zealand Dollar. The table below outlines the percentage change of the USD against major counterparts.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | — | 0.46% | 0.55% | 0.37% | 0.25% | 0.72% | 0.77% | 0.54% |
| EUR | -0.46% | — | 0.10% | -0.13% | -0.22% | 0.28% | 0.32% | 0.07% |
| GBP | -0.55% | -0.10% | — | -0.19% | -0.30% | 0.18% | 0.24% | -0.03% |
| JPY | -0.37% | 0.13% | 0.19% | — | -0.11% | 0.36% | 0.40% | 0.16% |
| CAD | -0.25% | 0.22% | 0.30% | 0.11% | — | 0.46% | 0.50% | 0.26% |
| AUD | -0.72% | -0.28% | -0.18% | -0.36% | -0.46% | — | 0.05% | -0.22% |
| NZD | -0.77% | -0.32% | -0.24% | -0.40% | -0.50% | -0.05% | — | -0.25% |
| CHF | -0.54% | -0.07% | 0.03% | -0.16% | -0.26% | 0.22% | 0.25% | — |
The heat map reflects percentage changes between major currency pairs. The base currency is selected from the left-hand column and the quote currency from the top row. For instance, choosing the US Dollar on the left and moving to the Japanese Yen column shows the percentage change for USD (base)/JPY (quote).
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