Gold Price Outlook: XAU/USD slips under $4,800 as US Dollar strengthens

Gold Prices Retreat After Recent Surge

Gold (XAU/USD) experienced a moderate decline on Wednesday, giving back some of its earlier gains from a two-day upswing. The metal was unable to sustain momentum above the $4,850 resistance level and slipped to intraday lows beneath $4,800, as the US Dollar Index rebounded amid conflicting updates regarding Iran.

Geopolitical Developments Impacting Markets

US President Donald Trump has adopted an optimistic stance on resolving the ongoing conflict. On Tuesday, he indicated that peace negotiations could soon resume, and in a Wednesday interview with Fox Business, he expressed confidence that the conflict with Iran could end in the near future.

At the same time, the US military confirmed on Wednesday that the blockade of the Strait of Hormuz is now fully enforced. Additionally, the Washington Post revealed that the US government is weighing the option of sending thousands more troops to the Middle East. While this move is intended to pressure Iran into reaching an agreement, it could also complicate the peace process.

Technical Overview: Resistance at $4,850 Remains a Barrier

XAU/USD continues to show a constructive short-term outlook, but price action remains confined between $4,600 and $4,850. On the four-hour chart, the Relative Strength Index (RSI) stays above the crucial 50 mark, though momentum appears to be fading. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is still in positive territory, reflecting a bullish undertone.

• For buyers to push prices higher, a clear break above $4,850 is needed, which could pave the way for a move toward the former support-turned-resistance zone just above $5,000. The next significant target lies at the March 10 peak of $5,235.
• On the flip side, support is found at the lows from April 5, 7, and 12, between $4,610 and $4,630. A decisive drop below this range would hand control to sellers and could drive prices down toward the March 26 low near $4,350.

(This technical analysis was generated with assistance from an AI tool.)