Gold Futures Slide Toward Key Support as Iran Lays Out Hormuz Terms

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Gold Futures Slide Toward Key Support as Iran Lays Out Hormuz Terms

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Gold futures slid on Thursday, and an Investing.com analyst says a key support level may have been breached. The analysis also covers Iran's statements on the Strait of Hormuz. Technical charts point to further downside if the 100 EMA gives way.

Gold futures are trading at $3,921 on the weekly chart, after Thursday's decline. As the US-Iran conflict entered its 259th day on Friday, the drop indicates a key support level may have been breached, potentially marking a turning point for gold's bear market.

Iran sets terms over Hormuz

Mohammad Bagher Ghalibaf, Iran's parliament speaker and chief negotiator, told Al Jazeera the Strait of Hormuz will not return to its pre-conflict status. He said Iran and Oman reached an understanding to oversee the waterway as part of Tehran's seven-point proposal to end the eight-month conflict.

Iran's conditions include lifting the US-imposed naval blockade and sanctions, releasing frozen funds and ending fighting on all fronts. Iran is waiting for President Trump's response. According to Ghalibaf: "The ball is now in the American court," he said.

Meanwhile, Israel has ordered its military to step up preparations for a possible attack on Iran, according to the analysis.

Technical levels point lower

The changing dynamics of the conflict are intensifying global concerns, and gold futures look ready to retest October 2025 lows this month. The analysis adds that most global central banks have already hiked interest rates, while the US Federal Reserve could do the same.

On the weekly chart, gold opened the week at $4,074.30, tested a high of $4,157.70 and a low of $3,857. Futures are trying to defend the immediate support at the 100 EMA ($3,905). A sustainable move below it could push futures to test the next key support at $3,510.74 in upcoming weeks.

On the daily chart, futures are trading at $3,917.40, trying to defend key support at $3,890.84. A breakdown there could push them below $3,855. A week's close below $3,890.84 could push them to test $3,790.

Source: Investing.com

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