Gold rises above $ 3,370 despite the fact that the Fed becomes a hard line, the US looks towards the attack on Iran

• Gold shows 0.14% while the Fed indicates only one cut in 2026, adopting a slightly Hawkish posture.
• Reports indicate that Trump approved Iran’s attack plans, feeding the demand of the US dollar as a safe refuge.
• Traders observe the Fed Data from Philadelphia below, since light trade due to vacations keeps appetite due to moderate risk.

The price of gold records modest profits on Thursday as geopolitical tensions increase due to increasing rumors that the United States (USA) could be involved in the Israel-Iran conflict. However, a federal reserve (Fed) slightly Hawkish limits the advance of gold metal. At the time of writing, the Xau/USD is quoted at $ 3,373, with an increase of 0.13%.

The geopolitics continued to boost the action of the price of gold due to reports of several US news sites such as The Wall Street Journal and CBS News that revealed that the plans of an American attack on Iran’s nuclear facilities had been approved by US President Donald Trump, who is weighing his options for a diplomatic exit.

Futures of shares in the US are falling, while the US dollar remains upwards in the midst of a light trade, since US markets remain closed in observance of the Juneteenth holiday.

On Wednesday, the Fed maintained the rates without changes and updated their economic projections, in which the officials revealed that they still expect two cuts in 2025. However, for next year, they anticipate only one instead of two cuts, adopting a slightly Hawkish posture when seeing that inflation remains above the goal of 2%.

The president of the Fed, Jerome Powell, commented that the policy is in a good place despite being moderately restrictive. He acknowledged that the impact of tariffs has not yet felt, adding that someone – be the manufacturer, intermediary or consumer – has to pay for it.

Although gold has fallen, it is typically sought during geopolitical tensions and lower interest rates environments; The restrictive inclination of the Fed could lead investors to turn to other currencies next to the US dollar.

In the course of this week, traders will be attentive to the manufacturing index of the Philadelphia Fed for June, which is expected to pass from -4 to -1.

What moves the market today: the price of gold rises although the Fed adopts a Hawkish posture

• The FED left the objective range for the federal fund rate without changes in 4.25%–4.50%, reaffirming that the US economy continues to expand at a solid pace, with conditions of the labor market that remain strong.
• The Summary of Economic Projections (SEP) showed a slight degradation in the GDP growth perspective for 2025 to 1.4% from 1.7% in March. The forecast of the unemployment rate was upward to 4.5% from 4.4%, while the inflation projection of the underlying PCE increased to 3.1% from 2.8%.
• The president of the FED, Jerome Powell, maintained his slightly neutral-hawkish position at his press conference, reaffirming that monetary policy is “well positioned to respond” to external clashes such as tariffs or geopolitical risks.
• In addition, Powell added that “the effects of tariffs will depend on the level”, and that “this year’s increases will probably weigh on economic activity and increase inflation.” Said, “As long as we have the type of labor market we have and inflation going down, the right thing is to keep the rates.“
• The US dollar index (DXY), which tracks the yield of the dollar against six main currencies, rises 0.19% to 99.03.
• The yields of the US Treasury bonds remain unchanged, with the 10 -year Treasury bonus currently at 4,391%. The real US yu. Followed the same trend, in 2,081%.
• The last survey of the World Gold Council on Central Banks revealed that most of the 73 respondents expect an increase in demand, which could underpin the prices of the ingot.
• The monetary markets suggest that traders are discounting 46 basic relief points towards the end of the year, according to Prime Market Terminal data.

Fountain: Prime Market Terminal

XAU/USD Technical Perspective: The price of gold will continue to be pressed below $ 3,400

The gold is consolidated near weekly minimums of $ 3,347 in the middle of the reluctance of investors to push the price in cash above $ 3,400, which opens the door to a setback. The Relative Force Index (RSI) suggests that buyers are losing impulse while golden metal is listed laterally.

For a bullish resumption, the Xau/USD must exceed $ 3,400. Once exceeded, this will present key levels of resistance such as the 3,450 $ brand and the historical maximum of $ 3,500 in the short term.

Otherwise, if the ingot falls below $ 3,370, the setback could be extended to the 350 $ brand and towards the simple mobile average (SMA) of 50 days at $ 3,308. More losses are expected once the support converted into a maximum of April 3 into 3,167 $.