On Wednesday (June 18), spot gold traded around $3,389.80/ounce, approaching $3,400/ounce. The rise in gold is inseparable from the tension in the Middle East. The conflict between Iran and Israel has entered its fifth day, and geopolitical risks continue to heat up, injecting strong momentum into safe-haven assets. However, the price pressure brought by the 0.7% increase in the US dollar index and the wait-and-see sentiment before the Federal Reserve's interest rate decision have limited the rise in gold prices.

The Federal Reserve is about to announce its latest interest rate decision on Wednesday, and the market generally expects it to maintain the policy interest rate range of 4.25%-4.50% unchanged. Since December last year, the Federal Reserve has maintained this interest rate level, reflecting the dual consideration of inflation and economic growth. However, the current market's wait-and-see sentiment on the Federal Reserve's policy makes it difficult for gold prices to break through key resistance levels in the short term.

From the daily level of spot gold, after a sharp rise at the beginning of the week, the current gold price has temporarily fallen back to a position slightly below the 3400 mark, but the overall rhythm is still dominated by the bulls. However, due to the loss of MA5 support, it is not ruled out that the MA10 or even MA20 points will be further tested. Combined with the situation of the Fed's interest rate decision in the evening, it is possible to continue to maintain a high-level shock trend before that.

From the 4-hour level of spot gold, with the continuous increase of the high point, the current gold price is actually still maintaining an upward trend. Although there will be some in-depth declines in the short term, it basically does not change the overall rhythm. It is just that adjustments need to be made in the short term. At this stage, the moving average group is not very helpful because it is basically glued together. The MACD indicator forms a dead cross at a high level. Pay attention to the limitation of the upper space. In terms of operation, it is recommended to keep buying on dips. Pressure: 3400-3410-3420 Support: 3385-3378-3370.

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.