Gold Dips to $4,770–$4,795 as Renewed Hormuz Tensions and Oil Spike Weigh on Safe-Haven Demand

Quick overview

As of the 20th of April 2026, Gold is currently trading at around $4,770-$4,795 an ounce, down a not-so-tiny 0.8-1.3% in opening trading after closing near $4,830-$4,857 on Friday.

Gold started the week on a pretty soft note, spot prices dipping towards $4,773-$4,787 amid that dreaded volatility. But nonetheless, it’s still sitting pretty well above those early April lows, even though its pulled back a bit from recent highs near $4,880-$4,890 that we saw last week. And even though its had a pretty wild ride so far this year, gold is still up by a tidy 10-40% year to date – though its had its ups and downs tied to all those developments in the Middle East.

Key Factors Lifting The Price Today

• The Strait of Hormuz – One Hotspot, One Big Problem: Those hopes for a stable ceasefire and open shipping lanes have quietly faded away over the weekend. Iran is now saying one thing and doing another – they’d said they’d be sticking to their word regarding incident-free shipping, but then went back on that. This has sent Iran – US ship traffic tensions back through the roof, with supply disruption fears sending oil prices shooting up a whoppng 6-8% today. And that fever of inflation worries & a stronger US dollar has put pretty much the kybosh on gold, as higher energy costs are going to put pressure on interest rates.
• The Oil-Gold Tightrope: We’ve just seen the oil prices do a crazy whiplash – they dropped sharply on Friday when there was a temporary respite, but now they’re lifting off again. So while pure geopolitical risk often spurs people to buy gold as a safe haven, these inflation/interest rate implications from sustained high oil prices are effectively capping the upside for now.
• The Dollar & Yields: And to top it all off, we’ve got a stronger US dollar today, which is just adding its weight to dollar-denominated gold.

And in the longer term, those supportive factors remain firmly in place – like persistent structural demand from central banks, some regions’ ETF recovery, and gold’s role as an inflation/geopolitical hedge. However, right now all anyone is talking about are those Hormuz headlines.

Gold (XAU/USD) – A Technical Analysis

Gold is right now trading near $4,789 on the 4 hour chart, repeatedly unable to break that $4,860-$4,886 resistance zone – and we can see it’s been marked with multiple rejection wicks there. So thats a pretty clear triple-top pressure area – while still managing to hold itself above that ascending trendline & that 50 day EMA down at $4,773 – keeping that short term bias looking constructive.

Not really looking like a lot of action to come – structure suggests we’re in for some more consolidation before a big move comes. RSI’s hovering around the 50-55 mark, so that momentum’s neither here nor there at the moment with neither the bulls or the bears really in control.

Key Levels

• Resistance: $4,886 – $4,996
• Support: $4,770 – $4,670 – $4,535

Trade Idea: Buy above $4,886 – targeting $4,996 – stop loss below $4,750.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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