Gold Stalls at $4,364 as Geopolitical Risks Lift the Dollar

Spot gold trades at $4,364.10 after failing to sustain a breakout above $4,400. This price action halts the recovery from six-week lows near $4,235. Traders remain cautious as geopolitical risks return to the forefront.

The US dollar gains strength amid hawkish Federal Reserve expectations. Higher Treasury yields make non-yielding assets like gold less attractive. FXStreet notes that this pressure limits upside potential for XAU/USD this week.

Geopolitical Tensions Drive Dollar Demand

Ukraine launched a large-scale drone and missile attack on Moscow. Reports indicate that 450 drones struck the city's main oil refinery. Moscow may intensify operations against NATO countries in response.

Tensions in the Middle East also escalate with Houthi attacks on Riyadh. President Trump mentioned considering severe actions against Iran. These developments support the US dollar as a safe-haven asset.

Technical Levels Define Trading Range

The 200-day simple moving average sits at $4,541.68. This level acts as significant overhead resistance for bulls. Reclaiming this price would signal a broader uptrend resumption.

Immediate support lies at the 21-day SMA near $4,419. Further downside support is found at $4,319 and $4,296. A break below $4,002 would indicate a deeper corrective phase.

Market Watchers Monitor Key Events

Markets await the critical meeting between President Trump and Xi Jinping. Trade talks on artificial intelligence and tariffs remain central. US Treasury Secretary Scott Bessent reported successful engagements with China.

Oil prices slide to their lowest in over a week. Diplomacy hopes in the Iran conflict ease inflation fears. This dynamic provides some relief for gold's downside trajectory.