On Tuesday (June 17, Beijing time), spot gold traded around 3395. Spot gold hit an eight-week high and then fell sharply by more than 1% on Monday, closing at $3385.75/ounce, giving up all the gains on Friday. Geopolitical tensions in the Middle East, especially the conflict between Israel and Iran, continue to support gold prices, while economic data such as the Federal Reserve's policy meeting and the monthly rate of US retail sales have become the focus of the market.

The Federal Reserve's policy meeting ended on Wednesday, and the market expected interest rates to remain unchanged. High inflation may delay interest rate cuts. High interest rates put pressure on gold, but geopolitical and inflation expectations may offset the negatives, and gold prices will fluctuate in the short term. The complexity of the global trade situation and the policy trends of the Bank of Japan also indirectly affect the price of gold. The progress of the short-term conflict between Israel and Iran is the core driver, and long-term global economic uncertainty may provide structural support for gold.

Yesterday, gold opened higher and touched the 3450 line, and then retreated from the high. After reaching the high, it retreated all the way down and fell. As of the evening, it reached the lowest level of 3382. From the current point of view, the top of gold in the short term has been determined to be in the 3450 area. The daily line of gold shows a negative line pattern, which shows that gold is under great pressure at high levels. The RSI indicator breaks through the 75 overbought area, and the MACD shows that the bullish momentum slows down. We need to be alert to the risk of falling back after rising.

From the perspective of gold 4-hour level, the current upward momentum is still running well. The support below focuses on the vicinity of 3380, and the strong support focuses on the 3355-3360 area, which is also the 5-week moving average position. Only if the 3355-3360 area is lost, the trend is expected to be reversed. If it does not break here, the bulls may still repeat. In summary, the upper pressure level of gold operation today is recommended to be in the 3420-3425 area. The support below focuses on 3380 and 3375, and the strong support focuses on the 3355-3360 area.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.