empty
23.06.2025 05:59 PM
XAU/USD. Analysis and Forecast

This image is no longer relevant

Today, gold is attracting new sellers. Amid a sharp escalation in the conflict between Iran and Israel, the United States conducted airstrikes on three Iranian nuclear facilities in Fordow, Natanz, and Isfahan early Sunday morning. These actions signal a significant worsening of the situation in the Middle East and raise concerns about a possible broader conflict. This supports the strengthening of the U.S. dollar's status as the world's reserve currency. Iranian Foreign Minister Abbas Araghchi stated that Iran would defend itself by any necessary means not only against U.S. military aggression but also against the "reckless and illegal actions" of the Israeli regime. He called the incident outrageous and warned that the consequences would be irreversible.

U.S. President Donald Trump warned that any retaliation from Iran would be met with greater force, adding that Iran faces either peace or tragedy. These statements intensify the risk of conflict spreading to other parts of the Middle East, which traditionally supports demand for gold as a safe-haven asset.

The U.S. dollar is holding near four-week highs, having surpassed last week's peak.

This image is no longer relevant

However, due to the Federal Reserve's forecast of two rate cuts this year, which limits the dollar's growth, gold prices have struggled to rise. Still, Fed officials forecast only one 25-basis-point rate cut in both 2026 and 2027, citing concerns that tariff measures by the Trump administration could lead to rising consumer prices. These expectations help keep the dollar strong and cap the rise in gold prices, which remain under pressure from the strengthening greenback.

Yet, as investors await Iran's response to U.S. airstrikes, the risk of further escalation in the Middle East remains high, continuing to weigh on market sentiment. In this environment of geopolitical uncertainty and trade tensions, demand for gold as a safe-haven asset remains steady, helping to limit the decline in bullion prices.

Under such circumstances, it is reasonable to wait for strong signals of further selling or new momentum before entering positions to extend the recent corrective pullback from a nearly two-month high. Traders are also advised to monitor the release of U.S. business activity indices, as these figures may become a key driver in determining the next market direction.

From a technical standpoint, as oscillators on the daily chart remain in positive territory, gold prices are not ready for a broad-based decline.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/CHF. Analysis and Forecast

On Tuesday, the USD/CHF pair is under selling pressure, pulling back from the weekly high near the key psychological level of 0.8000. This decline is driven by a combination

Irina Yanina 12:47 2025-07-08 UTC+2

What to Watch on July 8th? Fundamental Events Overview for Beginners

No macroeconomic publications are scheduled for Tuesday. However, it cannot be said that the market was idle on Monday despite the lack of key macroeconomic events—there was still enough news

Paolo Greco 11:19 2025-07-08 UTC+2

Markets given breathing room as tariff deadline pushed to August

No need to panic. The market is simply cautious about the White House's return to the tariffs announced on America's Liberation Day. Donald Trump sent letters to various countries specifying

Marek Petkovich 10:14 2025-07-08 UTC+2

GBP/USD Pair Overview on July 8, 2025

The GBP/USD pair declined slightly on Monday, but it's still premature to speak of a downtrend. From a technical standpoint, the pair remains below the moving average line; however

Paolo Greco 08:55 2025-07-08 UTC+2

EUR/USD Review on July 8, 2025

The EUR/USD currency pair traded with a downward bias throughout Monday, although there were likely no solid reasons for the dollar to strengthen again. Let's recall that over the weekend

Paolo Greco 08:37 2025-07-08 UTC+2

GBP/JPY. Analysis and Forecast

During the European session on Monday, the GBP/JPY currency pair is approaching the 198.30 level. The pair finds some support from UK housing data: in June, house prices rose

Irina Yanina 19:40 2025-07-07 UTC+2

XAU/USD. Geopolitical Risks May Provide Additional Support to the Safe-Haven Precious Metal

Today, gold is displaying an intraday bearish tone despite rebounding from the $3300 level. Strengthening demand for the US dollar remains the primary factor pressuring gold, limiting its upward movement

Irina Yanina 19:09 2025-07-07 UTC+2

Bitcoin leads turbulent life

Beneath the calm surface of BTC/USD lie turbulent underwater currents that are reshaping the cryptocurrency market structure. Still waters run deep. On the surface, it seems that life

Marek Petkovich 15:48 2025-07-07 UTC+2

USD/JPY. Analysis and Forecast

The USD/JPY pair maintains a bullish bias, staying above the psychological level of 145.00, reflecting intraday selling pressure on the Japanese yen amid U.S. dollar strength. Investors are concerned that

Irina Yanina 12:59 2025-07-07 UTC+2

USD/CAD. Analysis and Forecast

On Monday, the USD/CAD pair continued its upward movement for the second day in a row. This rise is driven by a combination of factors. Crude oil prices initially declined

Irina Yanina 12:39 2025-07-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.