US-Iran Conflict, Rate Hike Bets Slam Gold Prices

Gold's recent gains have been erased as the US-Iran conflict and tightening financial conditions weigh on the market.

The prolonged US-Iran conflict has pushed oil prices higher, while traders are increasing their bets for a rate hike at the upcoming July meeting. This has led to increased pressure on gold prices, which are under threat of sinking into new lows if the Fed surprises with a rate hike.

On the daily chart, gold's price action is showing a clear downward trendline acting as resistance, making it difficult for buyers to push prices higher. The sellers will likely continue to lean on this trendline, pushing prices into new lows.