Gold price (XAU/USD) traded higher near $4,675.00 during the European session on Tuesday, but remained broadly sideways as investors exercised caution ahead of US President Donald Trump's final deadline to Iran regarding the reopening of the Strait of Hormuz [1]. On Monday, President Trump declared that Tuesday's deadline would be the last, warning that Iran 'can be taken out in one night, and that might be tomorrow night' if it does not comply. Over the weekend, Trump further threatened to obliterate Iran's civilian infrastructure if the Strait is not reopened by Tuesday, 08:00 PM ET [1].
Iran responded by rejecting a temporary ceasefire, instead demanding permanent peace, guarantees against repeated aggression, compensation for damages, and recognition of its authority over the Strait of Hormuz [1]. The US Dollar Index (DXY) recovered its early losses and turned flat around 100.00 following Tehran's denial of the US ceasefire proposal [1].
From a technical perspective, XAU/USD trades marginally higher at $4,675.00, with a neutral-to-mild bearish bias as the price remains below the declining 20-day Exponential Moving Average (EMA), which caps recovery attempts around $4,720. The recent sequence of lower closes from above $5,300 into the current region highlights persistent downside pressure, though selling momentum has cooled. The 14-day Relative Strength Index (RSI) is at 45, below the 50 midline, indicating subdued bullish conviction [1].
Immediate resistance is at the 20-day EMA near $4,720, followed by the rebound high at $4,800. A sustained break above these levels could target $4,870. On the downside, support is at the April 2 low of $4,554, with further bearish objectives at $4,490 and $4,410. A daily close above $4,720 would ease downside pressure, while a move below $4,650 would confirm continuation of the broader corrective phase [1]. Investors are also awaiting the Federal Open Market Committee (FOMC) minutes and March Consumer Price Index (CPI) data, scheduled for release on Wednesday and Friday, respectively [1].
CONCLUSION
Gold prices remain range-bound as geopolitical tensions between the US and Iran escalate ahead of President Trump's deadline. Technical indicators suggest a neutral to mildly bearish bias, with key resistance and support levels in focus. Market participants are closely watching upcoming US economic data for further direction.