Gold Pulls Back as Dollar Strength and Geopolitics Trigger Volatility

Gold pulled back sharply from its recent high near 4,762, ending a four-day winning streak as the US Dollar gained strength.

This move came after Donald Trump warned that Iran might face serious military action in the coming weeks if no deal is reached. This reduced hopes for easing tensions, pushed investors away from riskier assets, and boosted the Dollar, which put pressure on gold.

At the same time, rising geopolitical tensions added complexity. Reports indicate the UAE is pushing for military action to reopen the Strait of Hormuz, with talks involving the UN Security Council. This caused oil prices to spike, raising inflation worries and strengthening the view that the Federal Reserve could keep interest rates higher for longer.

Higher US Treasury yields supported the Dollar further and weighed on gold, which doesn’t pay interest.

Gold fell nearly $150 from its peak during the Asian session, showing how sensitive the market remains to geopolitical news. While investors are watching the upcoming US Nonfarm Payrolls data, its impact may be limited unless it dramatically changes rate expectations.

Technically, gold ran into resistance near 4,780–4,800 and dropped toward 4,640. It is now approaching key support between 4,580 and 4,540, a level that held up well before.

Momentum is slowing, with a bearish MACD crossover suggesting downside pressure in the short term.

If gold stays above 4,540, the bigger uptrend can still hold, allowing for a rebound toward 4,750. But a break below this support could lead to a deeper decline toward 4,480 or even 4,420.

In the near term, this looks like a pullback, but the overall bullish trend remains as long as this support holds.

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