Precious metals regain footing Friday, but geopolitical uncertainty keeps broader risk appetite suppressed

Gold suffered one of its sharpest single-session losses of the year on Wednesday, shedding $175 per ounce — a decline of 3.87% — as gold futures settled at $4,375.

For the first time in weeks both gold and crude oil are up on the day, surprisingly so is the US dollar index. Gold is trading $32 or 0.73% higher today at $4,506 while crude oil is up by $2.92 or 3.30% at $91.30 and the US dollar index is higher as well up 0.42% at approximately 5:34 PM EST. 

Precious metals surge in final hour of trading after suffering worst weekly performance in over four decades.

Before President Trump's message about "good and productive conversations with Iran" sent markets rebounding Monday, traders had opened the week in a decidedly risk-off posture — and gold, usually a reliable safe haven in times of geopolitical stress, was telling a confusing story.

The Fibonacci chart does not lie, and right now it is telling a deeply uncomfortable story. Gold closed Friday at $4,497 — slicing through the 0.382 retracement level at $4,654 and now suspended in open air between that broken floor and the next major support at the 0.5 level of $4,361.

Source: Money Control

Gold sank for a seventh session as the escalating war in the Middle East drove oil prices higher and reduced prospects for a US interest-rate cut in the near term. Silver slumped more than 10%.

It happened today. The line in the sand — where the 23.6% Fibonacci retracement at $5,016 converged with the Murrey Math 4/8 Major S/R pivot at exactly $5,000 — has been broken. As of this afternoon, spot gold was printing $4,818, down $187 on the session and posting the largest single-day red candle since the conflict began. The chart tells the story with brutal clarity.

 The $5,000 level in gold is no longer a milestone. It is a battleground. As of Tuesday morning, spot gold was holding just above that psychologically loaded threshold, with all eyes turning to the Federal Reserve whose two-day policy meeting kicked off today.

Markets opened the week with a striking reversal from the pattern that has defined the past 17 days, and traders who read the surface-level price action in gold may be drawing the wrong conclusions.