Gold Prices Between $3,941 Support and $4,000 Resistance

The price of gold per ounce has shown a limited increase from the $3,965 level, yet it continues to remain below the psychological level of $4,000. As the weekly loss in the XAU/USD pair approaches 3%, the lowest level seen since the beginning of the year at $3,941 has come back into focus. The tensions between the U.S. and Iran, along with rising oil prices, have limited the support that low U.S. Treasury yields provide to gold. While an increase in safe-haven demand is expected, the potential impact of high energy costs on the global economy is increasing selling pressure. Iran has warned that it could close the Bab el Mandeb Strait. As the downward trend in gold continues, the $4,000 level is limiting any upward movements. On the four-hour chart, the downward trend that started from the peaks in February is still ongoing. The Relative Strength Index remains below the 40 level, while the MACD indicator is just below the zero line. The $4,000 level is the first significant barrier for upward movements. If this level is surpassed, resistances at $4,075 and $4,100 will be monitored. A break below the $3,941 support could bring $3,886 into play. If selling deepens, the $3,830 region will be watched.