Gold prices fell 0.2% during Monday’s trading, hovering near the key level of $5000 per ounce, and are on track to post losses for a fourth consecutive session.

Gold is currently trading below the breached bullish trend line, where it coincides with the weekly pivot point at $5090. It is worth noting that a break above the aforesaid pivot point could help prices regain their upward march, heading toward resistance levels of $5170 then $5318.

If gold fails to break above the weekly pivot point at $5090, it may test the first weekly support level at $4940. A sustained move below this level would be a negative signal that could intensify selling pressure, opening the door for prices to retreat toward the second support level of $4860.

In terms of geopolitical escalation, the conflict with Iran has entered its third week, as U.S. President Donald Trump has called for international assistance to reopen the closed Strait of Hormuz.

The narrow waterway south of Iran, through which nearly a fifth of the world’s oil supply flows, has become a critical focal point for the global economy. By effectively halting most tanker traffic through the strait, Tehran has cut off major energy routes, leaving large economies, particularly in Asia, facing significant supply disruptions.

Oil and gas prices have spiked as a result, threatening to reignite global inflationary pressures and weigh on broader economic activity.

In the same vein, U.S. strikes over ‌the weekend ⁠on Kharg Island raised supply concerns, as most of Iran’s oil exports pass through it.

From a fundamental perspective, investors are gearing up for a raft of central bank interest rate decisions this week.

Headlining the slate of policy meetings will be the Federal Reserve, which is widely tipped to leave borrowing costs unchanged on Wednesday.

Fed Chair Jerome Powell, who is due to step down from the helm of the Fed in May, will also use one of his final post-decision press conferences to provide fresh commentary on both the U.S. labor market and inflation.

Markets will be keeping an eye out for any clues around how the Fed aims to navigate these opposing forces in the coming months.

Finally, investors are awaiting the annual inflation data based on the U.S. Producer Price Index, with analysts expecting inflation to rise to 3% in February, up from 2.9% recorded in the previous month.