Gold Technical Analysis: Buy the Dip as Middle East Tensions Linger

Gold declined slightly due to profit booking.  It hit a high of $3345  and is currently trading around $3314.

In 2025, the Middle East is characterized by escalating geopolitical tensions stemming from the Israel-Gaza conflict, Iran's strategic recalibration, and persistent militant threats, further complicated by shifting alliances and fragile ceasefires. A weakened Iran is pursuing diplomatic engagement while avoiding direct aggression, and the US is countering Iranian influence, while militant groups exploit regional instability. These factors, combined with economic vulnerabilities, climate challenges, and governance issues, contribute to a volatile landscape with broad global implications, including increased safe-haven demand and sensitive oil markets.

Rate Hike Expectations: Market Sentiment Shifts

According to the CME Fed Watch tool, the chances of a rate pause in the June 18th, 2025 meeting have increased to 94.70% from 91.70% a week ago.

Technical Analysis: Key Levels and Trading Strategy

Gold prices are holding above short-term moving averages of 34 EMA and above 55 EMA and long-term moving averages (200 EMA) in the 4-hour chart. Immediate support is at $3290 and a break below this level will drag the yellow metal to $3264/$3230/$3200/$3165/$3135/$3100/$3000. The near-term resistance is at $3250 with potential price targets at $3265/3279/$3300/$3365/$3378/$3400/$3415/$3465/$3500.

It is good to buy on dips around $3280  with a stop-loss at $3250 for a target price of $3340.