I saw the news that Iran seized a ship in the Strait of Hormuz. Gold prices have bounced for a while but were pushed down again. Currently, the XAUUSD price is around $4,730. The trend for gold today remains on the Sell side within a downtrend channel.

The technical signals indicate that the RSI is at 40, which has not yet reached the oversold point where a strong rebound is expected. This means the chart still has room to decline further. If it bounces but does not break through the resistance at $4,770, there is a chance it could slide down to test $4,700 or even $4,645.

But this is where it gets interesting. The war news in the Middle East remains a ticking time bomb. If the situation escalates, the gold price trend could reverse to an uptrend immediately because investors will rush into gold for safety. Major institutional analysts still target $5,500 to $6,000 in the long term. From a long-term profit perspective, holding gold in this zone could be a good deal.

For short-term trading, it is recommended to focus on selling when the price bounces up to support the resistance. Set a Stop Loss above $4,785 and lock in profits at $4,709 or deeper at $4,700 if the decline continues.