Gold prices are under pressure, like political pressure in the USA

Gold prices trade flat because markets balance the Fed -dependent Fed with growing geopolitical risk.
The American dollar stops temporarily when US President Trump meets his national security team to discuss the next steps to resolve the conflict of Israel-Iranian.
Xau/USD trades in a narrow range because markets are waiting for the development of tensions in the Middle East

Gold (xau/USD) is on Thursday within strict range, consolidating from 3360 to USD 3,400.

These levels have repeatedly served as key low -term support and resistance during the last sessions.

WITH United States (USA) Observing holidays in Juneteenth, lower commercial volumes resulted in suppressed price movements, although the risk underlying is clear.

Geopolitical tensions persist as significant factors that drive gold prices. Russia has issued a clear warning against the US potential military involvement in Iran, describing them as “an extremely dangerous step” with “unpredictable negative consequences.”

Meanwhile, the Israeli defense minister Israel Katz emphasized the need for intensive attacks after the last escalation, emphasizing the constant risk associated with the conflict of Israel-Iran.

Katz specially attacked the Iranian Supreme Leader Chamenei, stating the goal of neutralizing nuclear and rocket threats.

On the economic front, gold prices face pressure from the renovated American dollar force after the latest update of the federal reserve policy. Though Fed On Wednesday, unexpected cautious comments of Jerome Powell, which kept interest rates permanently at 4.25-4.50 %.

The long -term profitability of the US treasury has dropped, but long -term crops increased, reflecting lasting inflation fears.

Daily Digest Market Movers: Factors to observe gold

The growing stocks of the enriched uranium escalated fears of his nuclear ambitions, which prompted the US and Israel to repeat their opposition to Iran armed with nuclear.
Russia warned that every American military intervention in Iran would be “an extremely dangerous step with really unpredictable negative consequences”, according to the spokesman of the Ministry of Foreign Affairs Maria Zakharov.
ANDMinister of Defense Sraeli Israel Katz stated that the highest leader of Iran, Chamenei “still cannot exist”, additionally fueling geopolitical tension.
This week, President Donald Trump has a second room meeting to assess the US potential involvement in the Middle East.
Reports suggest that the meeting will include discussions about the underground Iranian nuclear facility, raising shares in potential preventive measures.
Risk of oil and energy flow through the Hormuz Strait. With about 20% of global energy products passing through this choke, all disturbances can lead to an enhance in oil prices, increased inflation and pressure on central banks.
The Fed maintained interest rates on Wednesday at 4.25% -4.50%.
While the FED forecasts signal two cuts until the end of the year, chairman Jerome Powell issued a careful tone, emphasizing the approach depending on the data and noting the risk associated with inflation and tariffs.
Gold briefly increased in the direction of USD 3,400 after the decision on the stake, but the American dollar bounced, limiting further profits in metal.

Technical analysis: Golden bulls become careful nearly USD 3370

From a technical point of view, Fibonacci’s withdrawal downloaded from the lowest April nearly USD 2,955 to the highest level of April at 3,500 USD distinguishes several key levels that salesmen carefully observe.

At the time of writing, the prices currently trade around USD 33,65, and the immediate resistance is at the level of 23.6% Fibonacci Rebirth of the April movement, for $ 3,371. This level lies just above the 20-day straight movable average (SMA) to USD 3350, strengthening the short-term importance of this zone.

For Xau/USD To resume along its trajectory up, a break above USD 3371 can open the door to the next level of mental resistance to USD 3,400. Above there is a weekly level 3,452 USD, which can lead prices to a April record level of 3,500 USD.

On the other hand, the 20-day break of SMA can bring a 50-day SMA for USD 3314 in the direction of another psychological support zone for USD 3300.

At the same time, the Trend Trend Shows signs of relieving the relative force indicator (RSI) at 54, signaling a more neutral tone compared to the 60 reading seen last week.

Daily gold:

Gold often asked questions

Gold played a key role in human history because it was widely used as a magazine of values and an exchange medium. Currently, in addition to gloss and the apply of jewelry, precious metal is widely seen as a sheltered resource, which means that it is considered a good investment during turbulent time. Gold is also commonly perceived as protection against inflation and against the cushioning currencies, because it is not based on any specific issuer or government.

Central banks are the largest owners of gold. In order to support their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perceived force of the economy and currency. High gold reserves can be a source of trust in the solvency of the country. Central banks added 1136 tons of gold worth about $ 70 billion to their reserves in 2022, according to world gold data. This is the highest annual purchase from the beginning of records. Central banks from emerging economies, such as China, India and Türkiye, quickly enhance their gold reserves.

Gold has a reverse correlation with the US dollar and the American treasure, which are both the main reserves and safer resources. When the dollar absorbs, gold increases, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. The rally on the stock exchange tends to weaken the price of gold, while the sale in more risky markets favors precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can quickly enhance the EskaLA gold prices due to its sheltered status. As a homeless resource, gold grows at lower percentage rates, while the higher cost of money is usually burdened with yellow metal. Despite this, most of the movements depend on how the US dollar (USD) behaves when the resource is valued in dollars (Xau/USD). This sturdy dollar tends to maintain the price of gold price, while a weaker dollar can raise gold prices.