Gold Breaks Below Key Technical Level Amid Ongoing Macro Pressure

Gold's price dropped nearly 2% in Asian trading on Monday after breaking below $4,200. This move is significant because it broke through a key technical level at $4,230, which was seen as a strong support point.

The 61.8% retracement of the rally from $3,942.43 to $4,697.07 was also breached, with the price falling below $4,230.70. This has weakened the bullish interpretation of the August rebound and raised concerns about the sustainability of the uptrend.

The macroeconomic pressure on gold remains strong due to the ongoing US-Iran diplomatic tensions and the resulting oil price volatility. The Iranian government's proposal for reopening the Strait of Hormuz and restarting nuclear negotiations with the US has been rejected by President Donald Trump, keeping the oil price under pressure.