On Tuesday, April 8, gold prices experienced a slight pullback as investors monitored the approaching ultimatum from U.S. President Donald Trump demanding that Iran lift its blockade of the Strait of Hormuz. Despite escalating geopolitical risks, gold remains influenced in the short term by interest rate expectations and the movement of the U.S. dollar. Market sentiment is generally cautious, with investors maintaining a high level of alertness toward a potential escalation of conflict.
Over the past month, gold has shown an overall downward trend. In a high-interest-rate environment, non-yielding assets such as gold have become relatively less attractive. At the same time, the safe-haven appeal of the U.S. dollar has strengthened, increasing the cost of purchasing gold for overseas buyers and further weighing on gold prices. On Tuesday, the U.S. dollar index remained largely stable, but the overall strength of the dollar continues to pose potential upside resistance for gold.
Energy price fluctuations are also affecting gold investment sentiment. Tensions in the Strait of Hormuz have intensified volatility in the crude oil market, raising concerns about a possible resurgence of inflation, which to some extent supports gold's safe-haven demand. Investors are advised to closely monitor geopolitical developments and the interest rate policies of major central banks, as these factors will directly influence gold's short-term trading range and investment strategies.
From a technical perspective, if spot gold can break through the resistance level around $4,700 per ounce, it may open up room for short-term gains. Conversely, if it continues to be pressured by a strong dollar and interest rate expectations, the price may consolidate within the range of $4,600 to $4,700 per ounce. Investors should balance safe-haven demand with interest rate sensitivity in their positioning, paying attention to breakout signals within the price range while also monitoring global energy and inflation factors to optimize their investment portfolios.
Overall, gold is expected to continue its range-bound pattern amid a mix of geopolitical tensions and a high-interest-rate environment. In the short term, safe-haven sentiment and energy price volatility may lead to repeated fluctuations, while the medium- to long-term trend will depend on global economic fundamentals and the direction of interest rates. Investors should proceed with caution and adjust their asset allocations flexibly to mitigate risks.
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