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24 June 2025,07:58

Daily Market Analysis

Gold Slips as Ceasefire Boosts Risk Appetite

24 June 2025, 07:58

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 Key Takeaways:

*Ceasefire between Israel and Iran triggers risk-on sentiment

*Gold retreats as safe-haven demand eases, trades near key support levels

*Focus shifts to U.S. debt ceiling and global trade tensions as potential next catalysts


Market Summary:

Gold prices pulled back during early Asian trading hours on Tuesday, pressured by a rebound in risk appetite after U.S. President Donald Trump announced a tentative ceasefire agreement between Israel and Iran. The development momentarily eased fears of a broader conflict in the Middle East, prompting investors to rotate out of safe-haven assets and into riskier investments.

The move follows days of heightened geopolitical volatility that had driven gold to multi-month highs. With a resolution in the Israel-Iran standoff now seemingly on the table, safe-haven flows reversed course, although caution still lingers amid a lack of formal confirmation from Tehran. Explosions were still reported in the Iranian capital, underscoring the fragile and uncertain nature of the ceasefire.

While one major geopolitical risk appears to be receding, investors are already bracing for the next wave of potential volatility. Market attention is now turning toward unresolved U.S. domestic challenges, including the looming debt ceiling debate and escalating trade tensions between the U.S. and China. Any renewed uncertainty in these areas could quickly restore safe-haven demand for gold.

Meanwhile, the U.S. Dollar Index (DXY) continues to face selling pressure amid growing expectations that the Federal Reserve may shift toward a more accommodative policy stance. Softer inflation data and signs of labor market softness are reinforcing calls for interest rate cuts later this year, a development that tends to support non-yielding assets like gold.

In this environment, gold is caught between short-term technical weakness and medium-term fundamental support, making upcoming economic data and geopolitical developments critical to its next directional move.


Technical Analysis 

GOLD, H4 

Gold prices are trading lower in early Asia, testing key support at 3345.00. The recent decline follows the easing of Middle East tensions, yet price action remains confined within a consolidation zone. A confirmed break below 3345.00 could open the door to deeper losses toward the next support at 3320.00, with the MACD showing increasing bearish momentum. The RSI stands at 40, staying below the midline and pointing to a bearish bias in the short term.

However, if the support at 3345.00 holds, a rebound may follow, with potential retests of resistance at 3370.00 and 3390.00. Investors should continue to monitor both geopolitical headlines and the broader macroeconomic backdrop for directional cues.

Resistance level: 3370.00, 3390.00
Support level: 3345.00, 3320.00

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