Gold extended its slide for a third consecutive session on Friday, with XAU/USD falling to $3,348 during the early European hours. Traders have turned cautious ahead of weekend risk, especially as markets digest the Fed’s unchanged tone and geopolitical tension simmers in the background.
Gold is still trading at historically high levels, but recent dips suggest traders are locking in profits as immediate haven demand cools. The conflict between Iran and Israel hasn’t eased, yet markets seem less reactive this week. At the same time, a steady U.S. dollar is keeping upward pressure on gold in check.
Fed’s Hawkish Pause and Equity Rally Weigh on Gold Prices
The Federal Reserve kept rates on hold this week but signaled fewer cuts ahead, with Chair Powell stating that inflation remains “sticky” and any policy shift would be data-driven. That hawkish undertone gave the greenback a short-term boost, which in turn pressured gold.
Elsewhere, oil prices have cooled slightly, and equity markets are rallying, a combination that’s traditionally negative for safe-haven flows like gold.
Gold Technical Breakdown Today (1H Chart)
- Current Price: $3,348
- Immediate Resistance: $3,388
- Major Resistance: $3,430 (previous swing high)
- Support Zone: $3,320, then $3,280
- RSI (14): 35.62 – bearish, near oversold
Outlook
While gold is still in a long-term uptrend, the near-term bias has turned neutral-to-bearish. A clean break below $3,320 could drag it toward $3,280 next week. On the flip side, a bounce above $3,388 would suggest bulls are reclaiming short-term control.
For now, traders are waiting for either a risk-off event or a weaker U.S. data print to reload long positions.