Gold prices saw modest gains on Thursday, climbing above $3,370, driven by escalating geopolitical risks linked to potential U.S. military action against Iran. Reports revealed that President Trump approved plans targeting Iran’s nuclear facilities, heightening market anxiety. This helped gold, traditionally a safe-haven asset, gain traction despite a somewhat hawkish Federal Reserve stance.
The Fed held interest rates steady at 4.25%–4.50% but signaled a more cautious outlook by reducing expected rate cuts in 2025 from two to one, reflecting ongoing inflation concerns. Chair Jerome Powell emphasized that monetary policy remains appropriately restrictive, noting tariffs’ inflationary pressures and their uncertain impact.
In this environment, gold is consolidating just below $3,400, facing resistance at that level. Should gold break above $3,400, it could test $3,450 and then the record high of $3,500. Conversely, a drop below $3,370 might open the way toward support near $3,350 and $3,308 (50-day SMA), with further losses possible near $3,167.
Meanwhile, U.S. equity futures are down, and the U.S. dollar remains strong amid thin trading during the Juneteenth holiday. Market watchers are also eyeing upcoming economic data, including the Philadelphia Fed Manufacturing Index, expected to improve slightly.
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