Gold Tries to Recover After Six Straight Losses

Gold prices are beginning to stabilise after six consecutive sessions of losses, but the broader recovery remains measured. XAUUSD is trading near 4,853, up 34.47 points or 0.72%, after hovering around the 4,830 level and attempting to regain footing following its recent decline. While the pace of selling has slowed, the market has yet to show clear evidence of a stronger reversal after retreating from its 5,598 peak.

The main constraint continues to come from the Federal Reserve’s policy outlook. Although rates were left unchanged, policymakers indicated that only one rate cut is likely this year, reinforcing expectations that interest rates may remain elevated for longer. That backdrop is typically less supportive for gold, as higher yields increase the opportunity cost of holding non-yielding assets and reduce the appeal of bullion relative to income-generating alternatives.

At the same time, geopolitical risks continue to provide an element of support. Escalating tensions in the Middle East, including Iranian missile strikes on a Qatari site linked to the world’s largest LNG facility, have helped maintain some safe-haven demand.

However, that support has been moderated by the impact of higher oil prices, which can add to inflation pressure and strengthen the case for central banks to remain cautious on policy easing. This has created a more balanced environment for gold, where geopolitical tension offers support, but inflation concerns continue to cap upside.

From a technical perspective, near-term conditions remain fragile despite the latest bounce. Price is still trading below the 5-day moving average at 4,940, the 10-day at 5,046, the 20-day at 5,110, and the 30-day at 5,071, indicating that short-term momentum has weakened.

Dive deeper into what’s driving gold now, from Fed policy and inflation to geopolitical risk and key price levels in this article.