Gold prices fell in early Tuesday trading, breaking below the $4,100 support level. The precious metal is under pressure from a stronger dollar, particularly after last week’s hawkish tilt from the Federal Reserve. Another headwind for gold prices is the uncertainty surrounding the US-Iran negotiations aimed at ending the war and restoring normal maritime traffic through the Strait of Hormuz. Investors remain reluctant to price in a full resolution of the conflict, wary of further flare-ups that could trigger renewed spikes in energy prices and higher inflation. Against this backdrop, bullion may remain under pressure, as a sustained break below $4,100 could pave the way for a further decline towards $4,000, particularly if the ongoing talks in Switzerland fail to convince investors that there is a realistic prospect of ending the conflict and restoring stability in the Persian Gulf.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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