- The price of gold attracts new sellers on Monday, since the aggressive Fed position supports the USD.
- The climbing of geopolitical tensions in the Middle East could offer support to the Xau/USD torque.
- The operators now expect the publication of the global preliminary PMIS to obtain short -term impulses.
The price of gold (Xau/USD) extends its constant intradic descent from the 3,400 $ neighborhood and refreshes its minimum daily when entering the European session. The US attack to Iran’s nuclear facilities on Sunday increases the risk of a broader conflict in the Middle East and supports the status of the US dollar (USD) as a global reserve currency. In addition, the aggressive signal of the Federal Reserve (FED) last week turns out to be another factor that supports the dollar and exerts downward pressure on the yellow metal that does not yield.
Meanwhile, the feeling of global risk remains fragile due to the persistent uncertainties related to trade and a greater escalation of geopolitical tensions in the Middle East. This, in turn, could offer some support for the price of safe refuge gold and help limit deeper losses. Therefore, it will be wise to expect a strong continued sale before positioning itself for an extension of the backward slide last week since a maximum of almost two months. The operators now expect the publication of the global preliminary PMIS to obtain short -term impulses.
Daily summary of market movements: The price of gold moves down while the aggressive fed posture compensates the tensions in the Middle East
- In a significant escalation in the current war between Iran and Israel, the US launched air attacks aimed at three Iranian nuclear sites in Fordo, Natanz and Isfahan early on Sunday. Iran’s Foreign Minister Abbas Araghchi promised that Iran would defend himself by all necessary means not only against US military aggression but also against the reckless and illegal actions of the Israeli regime.
- Araghchi described the scandalous event and added that it would have lasting consequences. Meanwhile, the US president, Donald Trump, warned that any reprisals would be answered more strongly and added that there would be peace or tragedy for Iran. This increases the risk of contagion and a broader conflict in the Middle East, which should support the price of safe refuge gold.
- The Federal Reserve projected two rates cuts this year. However, Fed officials forecast only a 25 basic points cut in each of 2026 and 2027 amid concerns that Trump administration tariffs could increase consumer prices. This helps the US dollar stay stable near the maximum of last week and maintains a limit in an additional movement for the yellow metal that does not yield.
- The preliminary PMIS Monday’s publication could provide a new perspective on global economic health. This, together with the geopolitical developments, will influence the feeling of risk and move the Xau/Usd of safe refuge. Apart from this, USD price dynamics should provide significant impulse and help merchandise break a one -week negotiation range.
Gold price bassists seek to extend the fall beyond the support of the ascending trend channel
From a technical perspective, the bassists of the Xau/usd They expect some continued sale below the simple mobile average (SMA) of 100 periods and a convincing break below an upward channel in the short term before opening new positions. Since the oscillators in the daily chart have been losing positive traction and gaining negative momentum in the schedules, the price of gold could accelerate the fall towards the intermediate support of 3,323-3,322 $ before eventually falling to levels below $ 3,300.
On the positive side, the round figure of $ 3,400 now seems to have emerged as an immediate strong barrier for merchandise. A sustained movement could raise the price of gold to the region of 3,434-3,435 on a route to the area of ​​3,451-3,452 $, or a maximum of almost two months reached last Monday. Some continued purchase would allow the bullies to point towards challenging the historical peak, around the psychological brand of 3,500 $. The latter approaches the obstacle of the ascending channel and could limit the precious metal.
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.
