- The price of gold is pressed again despite a combination of support factors.
- The Hawkish posture of the Fed acts as a tail wind for the USD and weighs on the Xau/usd torque.
- Commercial uncertainties and the increase in geopolitical risks could support the precious metal secure refuge.
The price of gold (Xau/USD) is observed consolidating its intradic losses to more than a minimum of one week and quotes below the level of $ 3,350 during the first half of the European session. The US Federal Reserve (Fed) earlier this week cut the projections of feature cuts by 2026 and 2027, which, in turn, is considered a tail wind for the US dollar (USD) and undermines the demand of the yellow metal without yield.
Apart from this, a generally positive tone around European Variable Rent markets turns out to be another factor that exerts pressure on the price of gold. However, the increase in geopolitical tensions in the Middle East could limit any optimism in the market in the context of persistent commercial uncertainties and limit losses for the XAU/USD Seguro Refugio, which is still on its way to registering weekly losses.
Daily summary of market movements: gold price bears maintain intradic control backed by the Hawkish position of the Fed
- The US Federal Reserve (Fed) maintained stable interest rates at the end of a two -day meeting on Wednesday in the midst of concern that President Donald Trump’s tariffs could increase consumer prices. In the so -called points chart, the Committee projected two feat cuts by the end of 2025. However, Fed officials predicted only a 25 basic points cut in each of 2026 and 2027 in the midst of the risk that inflation could remain persistently high.
- The feeling of global risk remains fragile due to persistent commercial uncertainties and the increase in geopolitical tensions in the Middle East. In fact, Trump said earlier this week that tariffs in the pharmaceutical sector will arrive soon. This adds a layer of uncertainty in the markets before the deadline of July 9 for “day of release” tariffs and keeps investors in suspense, which could benefit the price of gold shelter.
- In the Geopolitical Front, the Air War between Iran and Israel continues for the eighth day in the midst of speculation about a possible US participation according to the president of the US Senate Intelligence Committee, Trump said Trump said he would give Iran the last chance to reach an agreement to end his nuclear program and delay his final decision on the launch of attacks for up to two weeks. This increases the risk of a broader regional war in the Middle East.
- It is observed that the US dollar goes back even more from a maximum of more than a week reached on Thursday, after the Hawkish pause of the Fed, which, in turn, could support the merchandise. In addition, the fundamental support of support suggests that the path of lower resistance for the XAU/USD torque is upward and supports the possibility that purchases arise in falls at lower levels for the weekend.
The price of gold needs to find acceptance below the support of the ascending channel to support the possibility of deeper losses
From a technical perspective, the intradication falls drags the price of gold below the simple mobile average (SMA) of 100 periods, to a pivotal support marked by the lower limit of an ascending channel in the short term. Since the oscillators in the daily chart have been losing traction and gaining negative impulse in the schedules, some additional sales should pave the way for an extension of this week’s fall from a maximum of almost two months. He Xau/usd It could then accelerate the fall to the intermediate support of 3,323-3.322 $ before it eventually fall to the round level of $ 3,300.
On the other hand, the horizontal area of ​​3,374-3.375 could now act as an immediate obstacle before the 3,400 $ brand. A sustained movement beyond the latter could raise the price of gold to the region of 3,434-3.435 on route to the area of ​​3,451-3,452 $, or a maximum of almost two months reached Monday. Some additional purchases would allow the bullies to point towards challenging the historical peak, around the 3,500 $ psychological brand, which approaches the barrier of the ascending channel.
Fed Faqs
The monetary policy of the United States is directed by the Federal Reserve (FED). The Fed has two mandates: to achieve prices stability and promote full employment. Its main tool to achieve these objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the objective of 2% set by the Federal Reserve, it rises interest rates, increasing the costs of loans throughout the economy. This translates into a strengthening of the US dollar (USD), since it makes the United States a more attractive place for international investors to place their money. When inflation falls below 2% or the unemployment rate is too high, the Federal Reserve can lower interest rates to foster indebtedness, which weighs on the green ticket.
The Federal Reserve (FED) celebrates eight meetings per year, in which the Federal Open Market Committee (FOMC) evaluates the economic situation and makes monetary policy decisions. The FOMC is made up of twelve officials of the Federal Reserve: the seven members of the Council of Governors, the president of the Bank of the Federal Reserve of New York and four of the eleven presidents of the regional banks of the Reserve, who exercise their positions for a year in a rotary form.
In extreme situations, the Federal Reserve can resort to a policy called Quantitative Easing (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non -standard policy measure used during crises or when inflation is extremely low. It was the weapon chosen by the Fed during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy high quality bonds of financial institutions. The one usually weakens the US dollar.
The quantitative hardening (QT) is the inverse process to the QE, for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the bonds that it has in portfolio that they expire, to buy new bonds. It is usually positive for the value of the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
