Gold Price Retreats from $4,700 as Tensions Ease in Strait of Hormuz

Gold prices retreated from $4,700 on Tuesday (August 25) due to easing tensions in the Strait of Hormuz and mixed U.S. data.

The North American trading session saw gold prices remain volatile, with bulls failing to break through the $4,700 mark, leading to a further retreat below this important psychological level.

The spot price of gold last traded at $4,653.47, up 0.04%, as overbought signals and positive news from the Middle East combined to put pressure on gold.

The Relative Strength Index (RSI) had entered overbought territory, indicating a potential for a pullback in gold prices, which indeed occurred.

Geopolitical conditions remain a key factor in gold's price movement, with President Trump announcing that the U.S. Navy has opened a traffic separation scheme for ships in the Strait of Hormuz, according to Axios News.