Gold Price XAUUSD Pauses Below $3,400: Will the Uptrend Continue?

Summary:

On June 17, 2025, the XAUUSD gold market recorded a correction after failing to stay above the $3,440 resistance level. Factors influencing the correction included geopolitical tensions between Iran and Israel, along with expectations for the US Federal Reserve's (Fed) monetary policy....

BUY XAUUSD

Close Time

CLOSED

3385.13

Entry Price

3430.00

3360.00

4568.37 +58.71 +1.30%

251.3

Pips

Loss

3360.00

Exit Price

3385.13

Entry Price

3430.00

Overview

As of the end of June 17, 2025, the price of gold XAUUSD fluctuated around $3,382.29, down slightly from the intraday high of $3,403.37. This correction came after the price of gold failed to sustain above the resistance level of $3,440, its highest level in the past two months.

Key drivers include geopolitical tensions and expectations for the US Federal Reserve’s monetary policy. The conflict between Iran and Israel continues to escalate, with back-and-forth attacks and US President Donald Trump calling for an evacuation from Tehran, boosting demand for safe-haven assets such as gold.

This tension creates an environment of uncertainty, with investors seeking stability in assets, with gold being a top choice. In addition, expectations for Fed monetary policy also play a role. Although the Fed is expected to keep interest rates steady at its upcoming meetings, investors are still anticipating a rate cut by the end of 2025. This supports gold prices, as gold tends to appreciate when interest rates fall, reducing the opportunity cost of holding the metal.

Market psychology

The current market sentiment is cautious and indecisive. The RSI (14) on the 15-minute chart is currently at 41.29, indicating a lack of clear direction, with gold neither overbought nor oversold. This reflects a cautious market state, with investors unable to decide whether gold’s uptrend will continue or if it will undergo a sharp correction.

It is also worth noting that when gold prices reach short-term highs like they are now, concerns about a correction could lead investors to move away from gold and instead seek other assets such as government bonds, which are often seen as safe havens in times of uncertainty. Concerns about global politics and the economy have increased demand for defensive assets such as gold, but have also made investors cautious about continuing to buy.

Technical analysis

Gold Price XAUUSD Pauses Below $3,400: Will the Uptrend Continue?_1

Technical analysis shows that gold is currently trading below the resistance level of $3,412.62, a key level on the chart. If it fails to break above this level, the downtrend could continue with the next targets at $3,373.23 and $3,343.53 respectively.

The current RSI (14) at 41.29 does not indicate oversold or overbought, but if the indicator drops further, it could be a sign of a deeper correction.

The MACD is currently below the signal line, suggesting that the downtrend may remain in place in the short term. At the same time, the moving averages (MA50 and MA200) are also giving sell signals, supporting the forecast that gold will face a short-term correction before it can resume its uptrend.

The Bollinger Bands are currently tightening, indicating a lack of strong volatility, but a breakout into or out of this range could send gold prices moving in a clearer direction in the coming days.

Trading Recommendations

Entry: 3385

Take Profit: 3430

Stop Loss: 3360

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