US Dollar is appreciating because of uncertainty, and it is exerting pressure on gold prices. An appreciation of the dollar will make gold more costly and decrease demand in the short run. Consequently, the gold is falling below $4,800 amid continuous geopolitical uncertainties. The uncertainty favors the dollar over gold at the current time, and this continues to press gold until a clear direction emerges.
Gold Price Maintains Bullish Structure Below Key Resistance
The daily chart for spot gold shows that the price failed to break above the 50-day SMA at $4,800 and consolidated within this area for the past two weeks. This consolidation highlights the importance of this region, as indicated by the red-dotted trend line, which extends from the October 2025 highs.
A break above this area at $4,900 will signal a strong rally to $5,600. However, a failure to break this level will open the door for a correction to $4,400.