Tariff uncertainty boosted demand for safe-haven assets, which was bullish for gold. However, it looks that traders want to see more positive catalysts before they will be ready to push gold prices towards new highs.

The rebound in U.S. equity markets has also put pressure on gold in today’s trading session. Yesterday, software stocks got decimated as traders worried that AI will eliminate businesses of software companies.

The huge sell-off in IBM stock, which was triggered by new features of Anthropic’s Claude, served as a positive catalyst for gold as traders rushed for safety.

Today, the rebound in the U.S. equity markets signals that investors’ appetite for risk increased, so it’s not surprising to see that gold has found itself under pressure.

The absence of news from Iran has also served as a negative catalyst for gold prices. For days, traders waited for a potential U.S. strike against Iran. However, U.S. – Iran negotiations are set to continue, so geopolitical premium declined. Traders should note that geopolitical premium may skyrocket in case U.S. strikes Iran, which remains a viable scenario.

From the technical point of view, gold pulled back towards the nearest support level, which is located in the $5100 – $5120 range. A successful test of the support at $5100 – $5120 will open the way to the test of the next support at $4880 – $4900.