Gold extends its decline, pressured by a hawkish Fed stance and a slightly calmer tone in Middle East tensions
Gold slipped below key support at \$3374 on Friday (23.6% Fibonacci retracement of the \$3120–\$3452 rally and rising trendline from the \$3120 low), pressured by a more subdued tone from the Middle East. President Trump’s decision to postpone an announcement on potential U.S. involvement in the conflict by two weeks helped ease market fears and lifted risk appetite, keeping safe-haven demand for gold in check.
Despite the pullback, traders remain cautious amid persistent geopolitical uncertainty, limiting stronger downside moves for now.
Earlier in the week, gold sentiment was dented by the Federal Reserve’s hawkish tone. While the Fed held rates steady, policymakers signaled that future actions will remain heavily dependent on incoming data related to the economy, labor market, and inflation trends.
Meanwhile, President Trump renewed his calls for more aggressive Fed easing, arguing that interest rates should be 2.5 percentage points lower to support investment and growth. However, he acknowledged he cannot directly influence monetary policy decisions.
Technically, the daily chart shows a weakening structure following the breach of initial support levels. The 14-day momentum indicator has turned negative, increasing the risk of further downside.
Bears now focus on the next support levels at \$3325 (38.2% Fibonacci retracement) and the psychological \$3300 area, though a daily close below the breached 20-day moving average at \$3350 is needed to confirm the bearish signal.
Gold is on track for a bearish weekly close, with losses nearing 2.8%, which could reinforce downside potential—especially if geopolitical tensions continue to ease.
The broken trendline now acts as initial resistance, with the \$3400 level serving as a key upside trigger. A break above this zone would ease immediate bearish pressure and shift near-term focus back to the upside.
Res: 3374; 3381; 3400; 3414
Sup: 3340; 3325; 3300; 3286
