Gold at Risk of Breaking $4K Support Amid Middle East Tensions
Gold opened lower on Monday with a $20 gap, pressured by a worsening geopolitical situation in the Middle East that raises inflationary risks and fuels expectations of a hawkish Fed.
Gold edged lower at the start of the trading week, gapping down $20 as geopolitical tensions in the Middle East escalated further. The heightened conflict is stoking inflationary concerns and reinforcing expectations that the Federal Reserve may either keep interest rates elevated or even consider rate hikes.
A more hawkish Fed outlook typically supports the US dollar, putting additional downward pressure on gold prices. The key $4,000 support zone is once again under threat, with market participants watching for a potential breakdown if the geopolitical situation continues to deteriorate.
Source: FXStreet Forex News