Created
: 2025.06.20
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Gold Price Forecast: XAU/USD is testing $3,340 support under growing bearish pressure
World FX news
Breaking news
Gold Price Forecast: XAU/USD is testing $3,340 support under growing bearish pressure
New
2025.06.20 20:04
2025.06.20 20:04
2025.06.20 20:04
- Gold extends its reversal as a brighter market sentiment is undermining demand for safe assets.
- Hopes of a negotiated outcome in the Middle East war are feeding a mild appetite for risk on Friday.
- XAU/USD is under a growing bearish momentum after breaking below the wedge pattern.
Gold (XAU/USD) is trading lower on Friday as easing concerns of a regional war in the Middle East have undermined demand for safe havens. The precious metal has extended its reversal from weekly highs, near $3,450, and is on track for a 2.75% weekly decline on its worst weekly performance in six weeks.
US President Donald Trump calmed markets on Thursday, affirming that he will take two weeks to decide whether to attack Iran, easing fears of a full-blown war of unforeseeable consequences.
Beyond that, news that European officials are in talks with Iranian delegates has boosted hopes of a negotiated resolution of the conflict, triggering a risk rally to the detriment of Gold.
Technical analysis: Price action broke the wedge pattern
XAU/USD is featuring an impulsive reversal from the $3,450 high, which has pierced the base of an ascending wedge pattern from mid-May lows, highlighting a growing bearish momentum.
The Relative Strength Index (RSI) in the 4-hour charts is well below the 50 level with the June 12 low, at $3,340 under pressure. Below here, the next support area lies at the $3,300 area, which contained bears on June 9 and 10.
A potential bullish reaction from current levels is likely to be challenged at the reverse trendline, now at $3,390 and the June 18 high, at $3,400 area.Gold Price Forecast: XAU/USD is testing $3,340 support under growing bearish pressure.
Gold FAQs
Gold has played a key role in human's history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn't rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country's solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Last updated
: 2025.06.20
Related articles
Gold edges lower as fears in the Middle East conflict ease
2025.06.20 21:35Platinum price at 11-year high, ETF outflows call for caution - Commerzbank
2025.06.20 21:04Central banks expect further Gold purchases in the next 12 months - Commerzbank
2025.06.20 21:02Fed meeting a non-event for Gold - Commerzbank
2025.06.20 21:00Price of Gold could also rise more significantly - Commerzbank
2025.06.20 20:54Gold Price Forecast: XAU/USD is testing $3,340 support under growing bearish pressure
2025.06.20 20:03
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Euro gains modestly against US Dollar as Trump calms conflict fears
The Euro (EUR)edges up modestly against the US Dollar (USD) on Friday, capitalizing on a softer Greenback as traders digest a cautious geopolitical signal from the White House.
New
2025.06.20 23:31EUR/GBP edges lower despite downbeat UK retail sales
The Euro (EUR) edges lower against the British Pound (GBP) on Friday, unable to capitalize on disappointing UK retail sales data released earlier in the day.
New
2025.06.20 21:58Fed's Waller: The Fed is in position as early as July for cuts
In an interview with CNBC on Friday, Federal Reserve (Fed) Governor Christopher Waller said that the Fed is in a position to cut the policy rate as early as July, per Reuters.
New
2025.06.20 21:45Gold edges lower as fears in the Middle East conflict ease
Gold (XAU/USD) is weakening on Friday, trading around $3,355 at the time of writing, as the yellow metal extends its pullback from the weekly high near $3,452 recorded on Monday.
New
2025.06.20 21:35Indian Rupee edges higher on softer US Dollar, stable Crude Oil
The Indian Rupee (INR) snaps its three-day losing run against the US Dollar (USD) on Friday, recovering modestly after hitting a three-month low the previous day.
New
2025.06.20 21:24Platinum price at 11-year high, ETF outflows call for caution - Commerzbank
The Platinum price continued to soar this week, reaching its highest level in almost 11 years yesterday at $1,350 per troy ounce, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.06.20 21:04Central banks expect further Gold purchases in the next 12 months - Commerzbank
"This week, the World Gold Council published its annual survey among central banks on their assessment of Gold reserves and future Gold purchases, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.06.20 21:02Fed meeting a non-event for Gold - Commerzbank
The Gold price remained virtually unaffected by the US Federal Reserve's monetary policy decision on Wednesday evening, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
New
2025.06.20 21:00US crude oil inventories post largest decline in almost a year - Commerzbank
US crude oil inventories recorded a surprisingly sharp decline of 11.5 million barrels last week, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.06.20 20:58IEA confirms demand peak at the end of the decade - Commerzbank
The IEA presented its medium-term outlook this week. As in the previous year, it believes that oil demand will peak at the end of the decade, Commerzbank's commodity analyst Barbara Lambrecht notes.
New
2025.06.20 20:57Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
