Gold fell on Tuesday after failing to stabilize above the crucial level of $5400 in the previous session. The yellow metal is currently trading near the daily pivot point of $5324, a sustained move beneath it may continue to fall towards $5250 then $5208. Conversely, if the price rises above the aforesaid pivot point, it may reclaim the resistance levels at $5384 then $5424.

The yellow metal eased on Tuesday, pulled back by a stronger dollar, ‌while investors assessed the impact of an escalating U.S. and Israeli air war against Iran.

Market Watch

Dollar gains as US industrial sector shows strength

The dollar index held on to its gains for the second session in a row, hovering near its highest level in more than five weeks, which it hit on Monday.

In the same context, U.S. manufacturing activity grew steadily in February, but a gauge of prices at the factory gate raced to a near 3-1/2-year high amid tariffs, highlighting upside risks to inflation even before a U.S.-led attack on Iran sent oil prices rocketing.

Marine insurers suspend vessel coverage

Insurance companies have withdrawn coverage for ships in the Gulf, prompting oil tankers and container vessels to avoid the Strait of Hormuz. The move comes after Iranian media reported that a senior Revolutionary Guard official declared the strait “closed” and warned that Iran would fire on any ship attempting to pass, raising concerns over maritime safety and disrupting global shipping traffic.  

Trump: Iran continues nuclear push despite U.S. warnings

President Trump said Iran ignored White House warnings not to rebuild its nuclear program. “After destroying Iran’s nuclear sites in Operation Midnight Hammer, we warned them against restarting elsewhere, but they ignored us and continued pursuing nuclear weapons,” he added.

Looking Ahead

Markets await statements from U.S. Federal Reserve officials today, as investors look for clues on interest rates and monetary policy. Any remarks on rates are expected to directly influence gold prices.