Gold Falls to Over One-Week Low as Fed Stays Firm
Gold prices dropped to their lowest level in more than a week, trading around $3,345 per ounce. This fall came after the U.S. Federal Reserve gave a strong signal that it may keep interest rates high for longer. Even though the Fed didn’t raise rates, its message suggested that rate cuts could be delayed into 2026 or even 2027. This made the U.S. dollar stronger and reduced the demand for gold.
Although the dollar pulled back slightly, gold didn’t gain much. Investors remained cautious and avoided large positions, keeping the price under pressure. Usually, gold gets support from global tensions, but this time the situation in the Middle East—especially between Iran and Israel—only helped limit the losses, not boost prices.
From a technical point of view, gold slipped below its short-term trendline and the 100-hour moving average. If it continues to drop, the next support levels could be around $3,322 and $3,300. On the upside, gold needs to break above $3,374 and then $3,400 to show strength again.
Impact: Gold might stay weak if the U.S. dollar holds firm. However, safe-haven demand from rising global tensions could possibly stop further declines or bring a short-term recovery.