Gold prices remain under downward pressure, having fallen 2.3% during Tuesday, trading near their lowest levels in more than a week of $4091 per ounce.
The yellow metal is currently trading near the first weekly support level at $4,057, and a break below this level followed by consolidation is likely to trigger a resumption of the downtrend, with the next support level at $3,959.
If gold does not break the first weekly support level at $4,057, may retests the weekly pivot point at $4,220, a break above this level would be a positive signal that could pave the way for prices to rise toward the weekly resistance levels near $4,318 and then $4,480.
In terms of geopolitical tension, the United States waived sanctions on Iran for 60 days from Monday after the first talks under a nascent peace deal, while officials reported a sustained lull in fighting in Lebanon under the agreement aimed at ending hostilities across the region.
U.S. Vice President JD Vance said talks with Iranian officials in Switzerland had laid a good foundation for a final peace deal, although Iran denied that it had begun discussions of its nuclear programme.
Chicago Fed President Austan Goolsbee said that with the labour market stable, he is focused on figuring out whether too-high inflation will stay that way or recede, as the effects of high tariffs fade, and if the conflict in the Middle East gets resolved.
From a fundamental perspective, the core personal consumption expenditures price index for May will be unveiled, with analysts forecasting an annualized pace of 3.3% and 0.3% month-on-month. The gauge will receive particular attention, as it is widely considered to be one of the Federal Reserve’s preferred inflation metrics.
Furthermore, the U.S. will release its final GDP data for the first quarter of 2026, with analysts expecting the growth rate to remain steady at 1.6%, in line with the reading recorded in the previous quarter.
Finally, markets are awaiting U.S. jobless claims data, with forecasts indicating that 226,000 Americans filed for unemployment benefits, in line with the previous reading.