Gold prices edged toward a double-top formation on Sunday, with traders positioning ahead of a U.S. Treasury announcement on new economic sanctions against Iran scheduled for 2 p.m. EDT Monday.
The yellow metal has tested the $2,450-per-ounce region multiple times in recent sessions, a level that coincides with the top of the pattern identified by technical analysts. The proximity to resistance comes as geopolitical tensions in the Middle East remain elevated, with the U.S.-Iran conflict entering its 176th day and no diplomatic breakthrough in sight.
U.S. Treasury Secretary Scott Bessent is set to unveil what the administration describes as "the toughest sanctions in history" against Tehran, targeting its oil exports and key trading partners, including China. Beijing, which purchases more than 80% of Iran’s shipped oil according to 2025 data from analytics firm Kpler, reiterated calls for diplomacy on Saturday. The sanctions announcement follows President Donald Trump’s warning that Washington would impose economic consequences on any nation providing "any type of lifeline to Iran."
The Strait of Hormuz, a critical chokepoint for global oil flows, remains effectively disrupted. Ship-tracking data showed only four commodity vessels transiting the strait on Thursday, none of them large crude carriers or liquefied natural gas tankers. U.S. Energy Secretary Chris Wright estimated that the seven-day average of oil moving through the strait has fallen to 8 million barrels per day, down from over 20 million before the conflict—roughly one-fifth of global consumption.
Iran has granted limited exemptions to Iraqi oil tankers, according to state news agency IRNA, following requests from Baghdad during a visit by Iranian parliament speaker Mohammad Baqer Qalibaf. The move underscores the regional economic strain while Tehran maintains leverage through its missile and drone capabilities, which analysts say could still impede tanker traffic or target rivals.
The analysis suggests that a sustained break above the double-top resistance could extend gold’s advance toward $2,500, while a failure to clear the level may prompt a retreat toward the $2,350 support zone. The metal’s recent rally from April 2025 to January 2026 was followed by heavy selling starting January 29, 2026, after a shift in U.S. policy that included the reported abduction of Venezuelan President Nicolás Maduro and his wife, as well as failed attempts to assert control over Greenland.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei characterized the pending sanctions as an "assertion of extraterritorial sovereignty" over U.N. member states, while President Masoud Pezeshkian reiterated calls for a diplomatic solution, stating that Iran remains in a position of strength despite the conflict’s toll. The war has resulted in thousands of casualties, including 168 Iranian schoolchildren killed on the first day, and over 750 U.S. military personnel wounded with 18 fatalities reported.
