Gold suppresses 3400, Powell's statement is crucial

Gold prices continue to fluctuate at high levels, lacking a clear direction. The Federal Reserve will announce its June interest rate decision. Although the market generally expects that the interest rate will remain unchanged this time, the key focus lies in the update of the dot plot and Powell's wording in the press conference. The market is currently betting that a rate cut cycle may begin in September, mainly based on a series of weak US economic data released recently. At the same time, the US CPI data in May cooled down across the board, with both the annual rate and the core annual rate lower than expected, which further strengthened the market's expectations for a rate cut in September.
Observation of the situation
The six-day conflict between Israel and Iran showed no signs of cooling down. US President Trump publicly put pressure on Iran and released remarks that he would impose tariffs on the pharmaceutical industry. Combined with the uncertainty of the trade outlook, the market's risk aversion sentiment was strengthened, which helped gold maintain a high level.
Technical analysis:
Analysts believe that the FOMC decision will be a key event that affects the direction of gold. If the dot plot shows that the expectation of 1-2 rate cuts is maintained in 2025, and Powell's words are mild, it may help gold prices break through the resistance level of $3,450 and then test the previous high of $3,499. On the contrary, if the dot plot is hawkish or suggests a delay in rate cuts, gold prices may fall again to the support area of ​​$3,350-3,330. GOLD GOLD XAUUSD XAUUSD XAUUSD XAUUSD