Gold Price Forecast: XAU/USD dips below $4,400 as Middle East tensions grow

Gold (XAU/USD) slipped below $4,400 on Tuesday, amid escalating tensions in the Middle East and rising oil prices, indicating a potential shift towards higher interest rates in major economies. This decline follows last week's highs in the $4,500 range. The pair's descent is further fueled by Tehran's warning of potential attacks on energy infrastructure in Gulf countries if there are new attacks on its assets.

As hopes for resolving the conflict fade, oil prices remain high, with Brent Crude surpassing $97.00 per barrel, nearing the $100 psychological level. This surge in oil prices is causing inflationary pressures, prompting central banks to adopt more restrictive policies. Currently trading at $4,394, XAU/USD was capped just above the key 200-day simple moving average (SMA) last week, with momentum indicators signaling early bearish momentum.

The Relative Strength Index (14) is near the 50 level, while the Moving Average Convergence Divergence (MACD) remains in negative territory. On the downside, the $4,370 low from Friday is likely to be tested, but key support lies between $4,300 and $4,285, as well as the neckline of a bearish Head & Shoulders pattern. Conversely, bulls need to overcome a cluster of resistances, including last week's highs at $4,510 and the 200-day SMA near $4,536, as a break higher could expose the August 25 high just below $4,700.