Gold (XAU/USD) prices are currently consolidating within a tight range, having recently experienced a pull-back. Despite ongoing tensions in the Middle East, the precious metal has stayed above important support levels. However, the $3400 mark has changed from support to immediate resistance.
The recent price movement for gold seems to be mainly a technical correction. Initial support is strong around $3374. A recent bearish pattern on the daily chart shows some immediate downside pressure. However, the overall technical outlook is still cautiously optimistic. This keeps the bulls in play for now.
Market participants seem unsure about making strong bets. They are focused on the future direction of the Federal Reserve's interest rate policy. Speculation about possible rate cuts by the Fed is a key factor for non-yielding assets like gold. Any clear news on this could lead to bigger price changes.
The current market for gold shows a struggle. On one side, there is safe-haven demand due to geopolitical risks. On the other side, US monetary policy expectations are pulling prices down.
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