• Fears of an escalation in the Iran war undermine the market mood at the weekly opening.
• Crude Oil trades at its highest in over a month as investors fear an escalation in the Middle East.
• XAU/USD is under selling pressure in the near term, support at $4,600.

Spot Gold gapped marginally lower at the weekly opening, with the XAU/USD pair battling to retain the $4,600 mark early in the Asian session.

Financial markets are in risk-off mode after United States President Donald Trump said on Tuesday that he will destroy Iran if they do not reopen the Strait of Hormuz by Friday. Trump threatened to destroy the country’s power plants and bridges if Tehran refuses to comply after the ten-day truce. The Islamic Republic responded by announcing reciprocal attacks on US “or related” infrastructure, hinting at an escalation in the Middle East war.

Meanwhile, multiple Asian and European markets will remain closed amid the Easter Monday Holiday. Investors will return in full force in the American session. At the same time, the barrel of West Texas Intermediate (WTI) trades around $106, its highest in over a month.

XAU/USD near-term outlook

The near-term technical picture for XAU/USD is bearish. The 4-hour chart shows price slipping back below the rising 20-period Simple Moving Average (SMA) near $4,663, while remaining well below the declining 100- and 200-period SMAs that cap the broader trend above, at $4,700 and $4,900, respectively. Momentum has swung negative and stands below its midline, while the Relative Strength Index (RSI) indicator has retreated toward the 50 line from overbought territory, indicating that buyers have lost control and that the market is shifting into a corrective phase.

Immediate support is seen around $4,600 and then $4,560 if selling pressure extends. On the topside, the 20-period SMA around $4,663 now acts as initial resistance, followed by $4,680 and the recent swing high at $4,785. A sustained recovery above the $4,680–$4,785 band would be needed to neutralize the emerging downside bias and open the way back toward the descending 100-period SMA cluster above $4,700.

(The technical analysis of this story was written with the help of an AI tool.)