Gold Price Forecast: XAU/USD tests key support at $4,070 amid high Oil prices - Mitrade

AI desk brief

Gold (XAU/USD) is under pressure and testing key support near $4,070, with spot quoted at $4,085.58 after a sharp Tuesday drop. The move is being driven by higher oil prices and escalating Middle East risk, which is offsetting the usual boost to bullion from lower U.S. Treasury yields.

Near term, a break below $4,070 would expose the $4,000 psychological area, while resistance is seen first at $4,150 and then at $4,200-$4,230. The note also points to bearish momentum on the 4-hour chart, with RSI near the low-30s and MACD below zero.