Gold futures fell on Tuesday, testing key support levels as geopolitical risks tied to the Strait of Hormuz and the U.S.-Iran conflict weighed on sentiment.
Gold for December delivery last traded at $4,420.95, down $52.75 or 1.18%, after testing a session low of $4,407. The metal has been consolidating near the $4,403.82 daily support level, a level the analysis suggests could be decisive if breached. On the 1-hour chart, a breakdown below $4,444 could trigger further selling pressure, while resistance is capped at $4,539.54, according to the technical assessment.
The pullback follows President Donald Trump’s statement on Truth Social that no talks or scheduled conversations are ongoing with Iran, reinforcing the blockade of Iranian ports and asserting that the Strait of Hormuz remains open. Iran has countered by stating the shipping route would stay closed until the U.S. meets its demands, including lifting oil sanctions, releasing frozen assets, and ending military operations. Iranian Parliament Speaker Mohammad Bagher Qalibaf told lawmakers the country would shift to a fully offensive military posture if negotiations fail to progress.
Tensions in the West Bank added to market caution. U.S. and Israeli officials indicated Washington has pressed Israeli Prime Minister Benjamin Netanyahu to publicly condemn militant settlers besieging Palestinian homes in Qusra. Palestinian-American Loui Ridi raised an American flag over his property in a show of defiance after settlers encircled three homes for more than a week. A tense confrontation occurred on Tuesday when a settler walked onto Ridi’s land, underscoring the fragile security situation.
The 172nd day of the U.S.-Iran conflict coincided with these developments, with Trump’s post reaffirming the blockade’s enforcement and Iran’s stance on the Hormuz closure remaining a flashpoint. Jared Kushner, in remarks to Fox News, suggested that backchannel discussions between U.S. and Iranian officials may be more active than publicly acknowledged, though he provided no further details.
Analysts note that while gold’s near-term technical picture remains fragile, the broader geopolitical backdrop continues to support haven demand. The analysis suggests that if support at $4,403.82 holds, a rebound toward $4,444 could stabilize prices, but a sustained break lower would risk accelerating losses.
