Gold trades choppy as Trump’s Iran ultimatum weighs on sentiment

From a technical perspective, the 4-hour chart shows XAU/USD forming a bearish flag pattern, with downside risks mounting as prices press against the lower boundary of the pattern.

The 100-period Simple Moving Average (SMA) near $4,654 continues to act as overhead resistance, with repeated rejections limiting upside attempts. A sustained break above this level could open the door for a move toward the 200-period SMA near $4,908.

On the downside, the 50-period SMA around $4,585 is providing some cushion, though a sustained break below this level could open the door for deeper losses toward the $4,400 region, with further downside risk extending to $4,100.

Momentum indicators remain mixed, with the Relative Strength Index (RSI) hovering near the 50 mark, indicating a lack of strong directional bias. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains negative, with the MACD line below its signal line and close to the zero line, suggesting subdued downside pressure rather than strong selling momentum.