Gold prices saw downward pressure Tuesday as traders reacted to developments in the Middle East. The metal traded lower early in the session.
Iran recently claimed it would administer the Strait of Hormuz. This statement reduced prospects for peace in the region and influenced market sentiment.
Traders are closely watching the $4,000 level. This price point is a large, round, and psychologically significant figure for many. It is also seen as a major options barrier.
The gold market, like several other commodities, shows signs of indecision. Widespread risk factors contribute to this uncertainty.