The Federal Reserve (FED) strong stance offsets the tensions in the Middle East, causing gold prices to fall to a more than week low.

Gate News bot reports that according to FXStreet, during the Asian session on Friday, gold prices (XAU/USD) faced a new supply shock and hit a more than one-week low in the last hour, approaching the $3345-$3344 per ounce range. The Federal Reserve's hawkish stance indicates that inflation risks remain high and suggests that future rate cuts will be slowed, which is seen as a key factor weakening gold, a non-yielding asset.

However, weaker risk appetite may provide support for this safe-haven commodity and help limit its further decline. Against the backdrop of uncertainty over US President Donald Trump's tariff policy, the further escalation of the conflict between Israel and Iran continues to weigh on investor sentiment. A broad-based weakness in equities, coupled with a slight decline in the US dollar (USD), could be positive for gold prices. Therefore, it is important to be cautious before making aggressive bearish bets on XAU/USD.

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HighYieldUltra-Stablevip
· 06-20 04:04
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