Gold halted its streak of sharp declines today, which had dragged the commodity's price down by 8.8% this week. Futures contracts broke through a series of solid support levels and are currently trading at their lowest since November 2025 at around $4,080 per ounce. A rebound in risk appetite has delayed a test of the psychological $4,000 level, but hawkish outlooks for U.S. interest rates suggest that downward pressure on the precious metal will persist.
Gold remains under intense selling pressure, breaching a series of key support levels, including the 50% ($4,670), 61.8% ($4,500), and most recently the 78.6% ($4,250) Fibonacci retracement levels. The aggressive breakdown of these barriers dragged the price down to $4,085.64, leaving the metal exposed to a test of the psychological $4,000 barrier. The RSI indicator has plunged to 26.1, signaling deeply oversold market conditions. Source: xStation5
What’s Driving Gold Prices Today?
-
U.S.-Iran Conflict Escalation: New missile and drone attacks in the Middle East shattered hopes for a ceasefire. Crude oil gains stalled today (OIL: -2.6%) in response to the U.S. announcing the "conclusion" of its operation, which Donald Trump labeled a "punishment for negotiating too long." On the other hand, Iran called the ceasefire "meaningless" given the recent exchange of fire, cementing the outlook for a prolonged and uncertain conflict—which in turn reinforces hawkish expectations for U.S. monetary policy.
-
Hawkish Fed and Rate Outlook: The Consumer Price Index (CPI) at 4.2% year-over-year has solidified expectations that the Federal Reserve will keep interest rates higher-for-longer. Because gold yields no interest, the prospect of elevated rates heavily dampens its appeal, especially given its already historically high valuations.
-
Cushion From Softer Core Inflation: While the headline inflation rate spooked investors by returning above 4%, the monthly core CPI grew by a mild 0.2% (2.9% YoY, in line with forecasts). This slightly softer print gave precious metals a breather and allowed them to halt their downward trend.
The ECB set to hike as SpaceX gets ready for take off
Economic Calendar: All eyes on ECB 🇪🇺 Rate hikes coming back to Europe❓(11.06.2026)
Morning Wrap: Risk appetite is back despite new exchange of US-Iran strikes (11.06.2026)
Daily Summary: Stocks and gold on their knees as US will continue strikes on Iran (10.06.2026)
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
