Gold prices fall near key support at $4,000 amid uncertainty over Fed policy and geopolitical tensions in the Strait of Hormuz.
Gold extended its decline, dropping 1.4% to $4,030 as investors grappled with persistent concerns over Federal Reserve policy and geopolitical risks. The metal remains under pressure despite a recent memorandum between the U.S. and Iran, as tensions in the Strait of Hormuz show no clear resolution.
Prices have fallen below key moving averages, reinforcing a bearish technical outlook. A break below the March low of $4,100 sets the stage for a test of psychological support at $4,000, with further downside risk if that level fails.
Market participants remain cautious amid mixed signals on central bank policy, with hawkish expectations continuing to dampen demand for non-yielding assets like gold.