Gold dips as Iran-Israel ceasefire cools safe-haven demand

Gold remains under pressure for the third consecutive day, registering a low of $3316 but has defended key support levels, following a ceasefire announcement between Israel and Iran by President Trump and Iranian officials. The easing geopolitical tension has reduced gold’s safe-haven appeal, while a sharp pullback in oil prices has further weighed on gold by dampening its inflation hedge status.

Despite the bearish bias, gold found some buying interest at lower levels as the US Dollar weakened. Expectations of a July Fed rate cut gained momentum after dovish comments from Fed Governors Michelle Bowman and Christopher Waller, providing mild support to the non-yielding metal.

Markets now await Fed Chair Jerome Powell’s two-day Congressional testimony for further clarity on rate cut timing. 

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold remains under pressure, displaying a weakening structure across multiple timeframes. On the daily chart, a bearish pinbar has formed, and prices are now trading below the 20-day SMA, indicating growing downside momentum. On the 4-hour chart, a series of consecutive bearish candles reinforces this weakness, while the 1-hour timeframe shows a developing bearish flag pattern, hinting at potential continuation of the downtrend.

Gold is now approaching the support boundary of a broadening descending wedge, a key technical structure that could dictate the next directional move. A decisive break below this wedge support may accelerate losses.

Weekly Trend: Neutral

Intraday Trend/ Intraday Strategy: The intraday bias remains Bearish and favours the strategy of Selling on Resistance and Selling on Support Breakdown

Major Support: 3316, 3306, 3290

Major Resistance: 3350, 3360, 3380