Gold prices tumble on ceasefire talks, following a subdued response to recent conflict escalation over the past two days

Gold dropped to a two-week low on Tuesday, as the metal continued to show only a muted safe-haven response despite escalating tensions in the Middle East. The initial uptick following U.S. involvement on Israel’s side in the Israel-Iran conflict was modest, and the market remained largely unreactive to Iran’s late-Monday missile strikes on U.S. military bases in Qatar and Iraq.

However, gold prices fell sharply overnight after reports indicated no significant damage from the Iranian attacks. The decline was further accelerated by news of a potential ceasefire reportedly requested by both sides, with U.S. President Trump acting as a mediator.

The sharp move lower breached key Fibonacci support at $3325 (38.2% retracement of the $3120–$3452 rally), a level critical to maintaining the near-term bullish structure. A sustained break below this point would expose the pivotal support zone at $3300/$3286 (psychological level and 50% retracement), increasing downside risk.

Technical indicators on the daily chart have turned bearish, with momentum weakening and both the 10- and 20-day moving averages forming a negative crossover—supporting the bearish outlook. However, a short-term bounce or profit-taking could occur before further selling resumes.

Immediate resistance levels are seen at $3352/$3357 (20DMA and recent intraday top), followed by $3374 (10DMA) and the key $3400 zone, which now serves as an upper boundary.

Res: 3352; 3374; 3400; 3414
Sup: 3316; 3300; 3286; 3247