Hormuz Deal Hopes Lift Gold Prices Above Key Resistance
Gold prices have been holding firm near $4,150 as hopes for a diplomatic resolution to tensions in the Strait of Hormuz rise. Despite easing immediate fears of supply disruptions, gold has remained resilient and continues to attract safe-haven bids from investors.
Historically, gold prices often retreat when geopolitical tensions subside, but this time the metal is holding firm, suggesting other factors are at play. The prospect of a deal could reduce the safe-haven premium that has supported prices in recent weeks, but investors are also focusing on central bank policies and inflation data.
From a technical perspective, XAU/USD has been consolidating in a tight range below the psychological $4,150 mark. A decisive daily close above this level could open the door to further upside, with the next resistance zone seen near $4,200.