Gold prices continued to decline on Tuesday as they lost their upward momentum, trading near the critical level $4,400. The yellow metal is currently trading below the daily pivot point at $4,448; if it settles below this level, it could decline toward support levels near $4,400 then $4,365. On the upside, if the price rises above the SMA (9) on the four-hour timeframe, it is likely to test resistance levels at $4,487 then $4,521.
Gold prices slipped on Tuesday as traders assessed Middle East tensions and awaited key U.S. labour market data due this week that could shape expectations for Federal Reserve monetary policy.
Market Watch
Trump vows to hit Iran hard
U.S. President Donald Trump threatened further strikes against Iran on Monday after the first exchange of direct attacks in a month, raising tensions in a conflict that had recently shifted into an economic standoff.
Iran launched missiles overnight at two U.S. air bases in Jordan in response to a U.S. attack on Iran’s Larak Island, where Washington said it had struck Iranian launchers firing mines into the Strait of Hormuz.
Trump on Warsh: He’ll do what he has to do
U.S. President Donald Trump on Monday told reporters in the Oval Office he has a lot of respect for Federal Reserve Chairman Kevin Warsh and that “he’ll do what he has to do” on interest rates.
Warsh in a recent speech said the U.S. central bank will “have work to do” if policymakers don’t get the confidence, they need that inflation is heading down to 2%.
Oil rises amid risks of supply disruptions
Oil prices gained on Tuesday as the resumption of fighting between the U.S. and Iran in the Middle East renewed fears of supply disruptions from the world’s key crude-producing region.
Highlighting the risks that remain to shipping and oil supply, the United Kingdom Maritime Trade Operations agency (UKMTO) said on Tuesday a tanker reported being struck by three projectiles while sailing out of the Strait of Hormuz. No casualties or environmental impacts were reported.
Looking Ahead
Markets are awaiting U.S. ISM Manufacturing PMI at 15:00 GMT, which could influence gold price.