Gold holds steady as US dollar strength pressures precious metals

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Gold drops 0.44% to $3,983 today

Highlights

Gold slumped following a surge in US dollar strength and increased expectations of a more aggressive Federal Reserve monetary policy stance.
A technology-driven broad market sell-off cascaded into commodities, intensifying liquidation pressures and accelerating gold's decline.
Technical signals remain bearish, with gold trading below key moving averages and momentum indicators supporting further downside within a $3,926–$4,040 range.

Selling accelerates as rate hike bets and cross-market liquidation increase

Gold's latest move has been shaped by a wave of selling during the European and U.S. trading sessions on June 24, with trading activity intensifying as noted by Moomoo. The decline has been driven by US dollar strength and heightened expectations that the Federal Reserve will pursue a more aggressive monetary policy stance, with possible rate hikes reducing Gold's attractiveness versus yield-bearing assets. Additionally, a tech-led cross-market sell-off triggered broad liquidation flows which spilled over into commodities, contributing to further selling in Gold according to Businesstimes Com.

Bearish momentum persists as gold fails technical support areas

On the technical front, XAU sits below the $3,990 (MA-20) and $4,047 (MA-50) levels on the hourly chart, and remains underneath the $4,644 (MA-200) on the daily timeframe. Immediate resistance is now set by the Ichimoku Kijun at $4,013, while nearby support lies at $3,926. The Relative Strength Index (RSI) stands at 40.96, reflecting mild selling conditions. The Moving Average Convergence Divergence (MACD) signals a strong sell, while the Average Directional Index (ADX) also indicates a continuation of selling pressure. The Stochastic RSI shows overbought readings, which may point to a pause or minor relief, although the Commodity Channel Index (CCI) and Bull/Bear Power confirm ongoing seller dominance. The Awesome Oscillator is neutral and does not confirm a clear trend.

Consolidation likely as downside risk overshadows upside triggers

In the short term, gold is expected to consolidate within a range between $3,926 and $4,040 over the next several trading sessions. Downside risk remains elevated if $3,926 support is lost, potentially leading to steeper declines. Conversely, a move above $4,013 resistance would be required to trigger upward momentum, though the probability of a near-term rally is very low. Baseline expectations suggest ranging behavior is most likely within the stated volatility band.

Viktoras Karapetjanc, expert at Traders Union, sees gold under pressure from dollar strength and rising Fed rate hike expectations. He notes the ripple effect from a tech-sector sell-off, which intensified liquidation across assets and weighed on gold. Karapetjanc believes the metal will consolidate above $3,926, with market sentiment cautious but not bearish. He maintains a constructive view on the macro backdrop limiting the downside. "Gold is finding its footing here, and if sentiment stabilizes, we could see renewed interest above $4,013."

Earlier, analysts noted that persistent selling pressure and reduced safe haven demand kept the outlook for gold bearish amid strong US dollar dynamics. The current session reinforces this view, with intensified selling activity and broad cross-market weakness maintaining downside risk—making the $3,926 support a critical level to monitor for signs of further deterioration.

Source of Data: XAU Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.