Major institutions continue to expect gold to rise despite gains in oil and the dollar

Gold prices declined during Monday morning trading, continuing to move sideways on the daily timeframe, as there are no events strong enough to push it out of this price range. This reflects the mood of markets and investor activity, with widespread uncertainty surrounding the future of the Strait of Hormuz crisis and the war involving Iran.

U.S. President Donald Trump stated yesterday that American forces would assist and support oil tankers stranded in the Strait of Hormuz. This statement is seen as a modest attempt to ease tensions over oil supplies. He has previously made similar remarks to reassure shipping companies; however, the crisis remains unresolved.

He also indicated that negotiations with Iran are ongoing, but markets need concrete developments that demonstrate real progress toward an agreement with clear terms regarding the conflict.

Returning to gold, a report published by the World Gold Council noted that gold has maintained its appeal despite the ongoing conflict and the shift of capital toward oil and the U.S. dollar. Strong demand for gold bullion shows that it has not lost its role as a safe haven for investors. Demand increased by 2% year-on-year in the first quarter of this year.

Other institutions have also issued positive forecasts for gold, as geopolitical tensions and concerns about the global economy persist. Bank of America expects gold prices to continue rising, potentially reaching around $6,000 over the next twelve months. Meanwhile, the World Bank projects that gold will maintain elevated price levels, with an average price likely around $4,750 this year.

Technical Outlook for Gold

The spot price of gold today stands at $4,556 per ounce. As shown on the four-hour timeframe, gold has tested the $4,530 level and rebounded from it, but it is attempting to retest this level again.

The Relative Strength Index (RSI) indicates that gold has declined in recent days. With the price currently testing this support level, a break below it could lead to a drop toward the next support at $4,360. On the other hand, if gold manages to rebound from the current range, its first resistance level would be at $4,850.

It is clear that the long-term trend remains upward, and this phase can be described as a correction or a pause before continuing the rise.