Gold Daily | Easing Tensions and Fed Inflation Concerns Weaken Gold Prices, Testing Key Support Levels

【Latest Gold Price and Recent Trends】

Gold prices weakened this week due to easing Middle East tensions and heightened inflation uncertainty from the Federal Reserve. As of June 20th, spot gold is at $3,370, down nearly 2% for the week. The potential U.S. intervention in the Israel-Iran conflict has increased market anxiety, but recent developments have lessened immediate concerns.

【Technical Analysis】

Technical indicators suggest gold prices need to defend the 21-day SMA at $3,350 to maintain buying interest. A fall below this could test the 50-day SMA at $3,318. Resistance levels include $3,377 and $3,400, with further bullish targets at $3,440 and $3,453.

【Market Sentiment and Economic Background】

Geopolitical tensions have been a focal point, with U.S. intervention in the Israel-Iran conflict still a possibility. President Trump's decision timeline eases immediate fears, while Fed inflation warnings complicate rate cut prospects, impacting gold negatively due to its zero interest yield appeal. Despite recent declines, gold remains up 30% this year, nearing historical highs. Investor interest is shifting towards silver and platinum for safe-haven investments.

【Analyst Opinions】

Opinions are divided on gold's future trajectory. Goldman Sachs predicts a rise to $4,000 by next year, while Citigroup foresees a decline below $3,000 by 2026. The easing tension and Trump’s two-week decision window suggest a temporary relief for gold, though broader macroeconomic factors continue to present challenges.