Gold is firm when the war with Iran-Israeli messages positive data on moods in the USA

Gold prices remain firm because markets focus on Israel’s attacks on Iran.
Xau/USD is still growing, and prices maintain a company over USD 3,400, while American assets and risk assets are falling.
Michigan Consumers have overcome the mood and expectations, and inflation expectations are falling. But the tone of “risk” remains.

Gold (Xau/USD) extends its profits as Israel’s attacks on Iran continue, supporting the demand for protected precious metal.

At the time of writing, the gold trads nearly 3,430 USD, with a rapid augment in the stubborn momentum potentially opening the door to a re -record 3,500 USD in the near future.

Israel’s attacks on Iranian nuclear facilities resulted in a wide tone of “risk” in the markets, supporting gold growth.

The latest news indicates that the United States and Israel have warned that the attacks will probably persist, which leads to an augment in gold prices, which currently amount to USD 3,430.

In a television interview with ABC News, President Donald Trump said: “We warned them and ignored them. They were hit more strongly than ever before, and there are still many where it comes from.”

In a post on social media, President Trump said: “I gave Iran a chance to conclude a contract. In the strongest words I told them to” just do it “, but no matter how much they tried, no matter how close they were, they just couldn’t do it.”

Governments around the world, from Riyjad to Beijing, have been condemned by strikes. A spokesman for the Ministry of Foreign Affairs, Lin Jian, called all the parties to “press on the regional room, stability and avoid further escalation.”

The raids in Iran reportedly killed older figures of IRGC, such as Division General Mohammad Bagheri and commander of IRGC Hossein Salami, as well as several nuclear scientists.

Along with growing geopolitical tensions, the attractiveness of Gold remains powerful.

USA of the sentiment and expectations of inflation in the USA do not augment the risk of mood

According to the first round of preliminary data from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (uom) from the University of Michigan (uom) from the University of Michigan (uom) Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan (UOM) from the University of Michigan.

The Michigan consumer expectations indicator increased to 58.4, compared to 47.9, while the consumer mood indicator increased to 60.5, much above expectations of 53.5 and over 52.2 in May.

Meanwhile, inflation expectations showed signs of soothing, with the annual perspective to drop to 5.1% from 6.6%, and five -year forecasts dropped to 4.1% from 4.2%. As preliminary data, these numbers offer an early shutter of consumers and price expectations that can still be changed.

These data generally confirm the argument for the US Federal Reserve (FED) to reduce interest rates due to the slowdown in inflation. However, along with rising oil prices after attacks in Iran, FED comments at the upcoming meeting of the Federal Open Market Committee (FOMC) can take a different direction on Wednesday.

However, the escalation of tensions in the Middle East introduces a modern uncertainty that can affect global markets, energy prices and inflation expectations, potentially complicating the Fed policy path, despite encouraging economic signals.

The final survey data has been planned to be released on June 27, providing a more comprehensive picture of consumer moods and inflation expectations to evolution of global conditions.

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Daily Digest Market Movers: Geopolitics and the Middle East, the conflict remain in the center of attention

In a post on social media, President Trump said: “I gave Iran a chance to conclude a contract. In the strongest words I told them to” just do it “, but no matter how much they tried, no matter how close they were, they just couldn’t do it.”
These comments arose questions about the US involvement in attacks, which may cause the geopolitical risk of getting worse between the US and other nations that have condemned attacks.
In a post on social media, President Trump said: “I gave Iran a chance to conclude a contract. In the strongest words I told them to” just do it “, but no matter how much they tried, no matter how close they were, they just couldn’t do it.”
On Friday, Reuters and Bloomberg announced that Israel hit many objects in Iran.
The Israeli Prime Minister Netanyahu confirmed the attacks, citing the fact that Israel “hit the Iran series in the nuclear enrichment program.” Reports from Israel have confirmed that about 100 goals were affected by the utilize of 200 air force aircraft.
Several higher Iranian officials were killed, including Hossein Salami, head of the Islamic Corps of the Revolutionary Guard and the Chief of Military Staff, Mohammed Bagheri
The escalation of tensions appeared on Thursday after the UN nuclear supervisor adopted a resolution stating that Iran violates his obligations arising from the nuclear non -relief agreement. In response, Tehran announced plans to escalate nuclear activities, claiming that “it is not possible to answer.” Uranium, spinal fuel used in nuclear energy, can be armed with high enriched. Iran still insists that his nuclear program is intended only for peaceful purposes.
Trump confirmed on Wednesday that US staff are transferred from the Middle East due to the escalation of tensions between Israel and Iran. This happens before the sixth earth of nuclear conversations between the USA and Iran, scheduled for this weekend, which was canceled.
On the front of economic data, the release of data of American price indicators (PPI) on Thursday showed that inflation slows down the wholesale level. The main PPI showed an annual augment of 2.6% in May, according to the forecasts of analysts, after 2.5% growth in April. Core PPI, which excludes volatile goods, fell to 3% in May, compared to 3.2% in April.
PPI data took place after the publication of the American consumer price indicator (CPI) on Wednesday, which showed that inflation at the consumer level is still soothed in May.

Technical analysis: gold prices break $ 3,400

Gold prices rose on Friday after reports of attacks, exceeding the previous level of psychological resistance worth USD 3,400, which now became support.

The protected charm of gold raised Xau/USD to its second highest peak this year nearly USD 3,444, where Metal is currently trading. The next level of resistance remains 3,500 USD, a record level that was achieved in April.

Meanwhile, the support remains firm in the amount of USD 3,400, and the lower traffic brings USD 3,385. The latter is another key level that reduced gold growth movement several times during the week.

Meanwhile, the relative force indicator (RSI) is 60 and indicates up, which indicates stubborn bias. On the other hand, the 3350 USD psychological level, which provided support throughout the week, remains intact. Below is 3291 USD, 23.6% fibonacci withdrawal up January-April.

To bear the rush to get adhesion, violation of this zone can pave the way for the next high psychological level of $ 3,200.

Daily gold chart (XAU/USD)

FAQ in American dollars

The American dollar (USD) is the official currency of the United States of America and the “de facto” currency of a significant number of other countries where it is in circulation with local notes. It is most often a commercial currency in the world, which is over 88% of all global currency turnover, i.e. an average of $ 6.6 trillion of transactions per day, according to the data from 2022. After the Second World War, USD took over from the British pound as the reserve currency of the world. For most of its history, the American dollar was supported by gold, up to the Bretton Woods agreement in 1971, when the golden standard disappeared.

The most critical single factor affecting the value of the American dollar is the monetary policy, which is shaped by the Federal Reserve (FED). The Fed has two seats: achieving price stability (control inflation) and supporting full employment. Its main tool to achieve these two goals is to adjust interest rates. When the prices rise too quickly and inflation is above 2% of the Fed target, the FED will augment the rates, which helps USD values. When inflation drops below 2% or the unemployment rate is too high, the Fed may reduce interest rates that are weighing in the green area.

In extreme situations, the Federal Reserve can also print more dollars and introduce quantitative alleviation (QE). QE is a process in which the Fed significantly increases the credit flow in the detained financial system. It is a non -standard policy measure used in the event of a loan desiccated, because the banks will not borrow (for fear of the contractor). This is the last last, when just lowering interest rates is unlikely to achieve the necessary result. The weapon of choosing the Fed was a FED weapon to combat the credit crisis, which took place during the great financial crisis in 2008. This includes FED printing more dollars and using them to buy US government bonds mainly from financial institutions. QE usually leads to a weaker American dollar.

Quantitative twist (QT) is the opposite process in which the federal reserve stops buying bonds from financial institutions and does not reinvest from the bonds that it has in modern purchases. This is usually positive for the American dollar.