Gold (XAU/USD) remains under pressure on Thursday, but is holding near $4,700 at the time of writing, showing some resilience despite the unfavorable environment.
The appreciation of the US dollar (USD), supported by geopolitical tensions around Iran and the Strait of Hormuz, is weighing on the yellow metal. At the same time, persistent inflation concerns are reducing expectations for Federal Reserve (Fed) interest rate cuts, further strengthening the dollar and putting pressure on non-performing assets.
While geopolitical risks remain elevated, the overall gold situation remains negative, with markets looking for a clear break below $4,700 to confirm a deeper decline.
Technical analysis: Continued downward pressure
On the four-hour chart, XAU/USD is trading at $4,697.86, maintaining a bearish tone in the miniature term as the price holds below the 100-, 200- and 50-period straightforward moving averages (SMAs) centered around $4,746 to $4,782. A break from the previous uptrend has gold resting on past trendline support around $4,684, while the Relative Strength Index (RSI) of around 39 suggests faint downside momentum rather than complete oversold.
On the upside, initial resistance is currently seen at the 100-period SMA at $4,746, followed by the 200-period SMA at $4,762 and the 50-period SMA at $4,782, which together form a dense supply band that needs to recover to ease bearish pressure. On the other hand, immediate support coincides with the uptrend line around $4,684; a clear move below this area would expose the next significant horizontal level near $4,554.
(The technical analysis for this story was written with the assist of an AI tool.)
