Profit-taking and a stronger US Dollar weighed on the yellow metal on Tuesday, pulling it lower after it had hit an eight-week high.
The US Dollar Index rebounded to around 98.40 from a near three-year low at 97.59, supported by rising geopolitical tensions.
The move followed sharp remarks from President Trump, who praised Israeli airstrikes, demanded Iran’s “unconditional surrender,” and warned of stronger action unless Tehran ends its nuclear program.
He ruled out a ceasefire and urged civilians to evacuate Tehran, although earlier in the day, he had expressed hope for a deal, noting, “Sometimes countries have to fight it out first.”
Traders now turn their focus to key US economic data, with retail sales expected to ease from 5.2% in April to 4.9% in May amid ongoing tariff pressures.
Additional releases include industrial and manufacturing production, trade prices, and business inventories—all of which are ahead of the Federal Reserve’s policy decision.
Markets broadly expect the Fed to keep rates steady at 4.25%–4.50%, resisting President Trump’s call for a full-point cut aimed at boosting US competitiveness.
Technically, the Relative Strength Index (RSI) remains in positive territory, holding above the 50-midway point.
The Moving Average Convergence Divergence (MACD) also hovers above the 0.00 line, indicating a weak bullish bias.
Meanwhile, the Average Directional Index (ADX) signals a modest bullish trend.
With geopolitical tensions and fiscal concerns offering initial support, any pullback is likely to attract bargain hunters, with the broader outlook aiming for the key $3,500–25 zone.
Initial support is seen at $3,380–85, with a break below potentially triggering stop-losses toward $3,368.
Daily Chart Spot Gold
