The metal is down about 1% intraday, and has lost 4.3% over the week.
Gold is trading little changed on Wednesday, hovering around $4,500 per ounce.
Tensions surrounding Iran are putting pressure on prices, fueling inflation fears. The situation on the Middle East front remains tense—earlier today, Iran warned that it would retaliate far beyond the Middle East if the US or Israel resumed attacks. The day before, Trump threatened Tehran with a new series of strikes, but changed his mind "at the last minute."
Against this backdrop, investors are cautious, fearing that a war will drive up inflation through energy prices and force global central banks to raise rates. As an analysis of the XAU/USD chart by WarrenAI, a smart chatbot from, showed, the technical picture fully reflects the fundamental uncertainty. On the daily timeframe, gold prices entered a zone of maximum turbulence, balancing near the critical support line at the 50% Fibonacci level ($4,538).
The short-term trend remains bearish. The price is firmly locked in below: it is trading under a heavy Ichimoku cloud, below the SuperTrend lines and key moving averages (20- and 50-day). The formation of a structure of successively lower highs and lows only confirms the sellers' total control over the market.
Furthermore, a bearish engulfing pattern was recorded on the chart yesterday, which is a strong signal for a further decline.
However, the market paused for the moment. The last daily candle formed a doji (a symbol of indecision) on reduced trading volumes. This suggests that sellers are locally exhausted, but buyers are also in no hurry to take over.
In this situation, the algorithm recommends avoiding new trades in the current range ($4,450–$4,550). This is a "gray area" rife with traps for traders in both directions, where the potential risk-to-reward ratio appears mathematically unfavorable. For conservative trend-following investors, the most prudent strategy would be to wait for a pullback (a retest of the 20-day moving average) around $4,670 to enter short at a more favorable price with an eye on a fall to $4,395. A global bullish reversal and return to buying scenario would only become relevant if the price breaks through the Ichimoku cloud and confidently consolidates above $4,860.
The main risk at the moment: if support fails and the asset breaks the local low of $4,455, this would trigger an avalanche-like acceleration of the decline with targets in the $4,125–$4,235 region.