Core Viewpoint - Gold prices are experiencing a downward trend, influenced by the Federal Reserve's hawkish stance and geopolitical tensions, leading to a complex market environment for investors [1][3][5]. Market Analysis - Gold prices fluctuated, dropping from a high of $3370 to below $3350, marking a potential three-week decline [1][3]. - The Federal Reserve's decision to maintain interest rates and its projection of only two rate cuts by the end of 2025 have contributed to the bearish sentiment in the gold market [3][5]. - Despite the overall weakness, a retreat in the US dollar and ongoing geopolitical risks, particularly regarding Iran, have provided some support for gold prices [3][5]. Trading Strategy - Current trading strategies suggest a focus on short positions, with key price levels to watch being $3330 for support and $3370 for resistance [5][6]. - The market is characterized by a struggle between bullish and bearish sentiments, making it crucial for traders to adapt their strategies based on price movements [3][5]. Geopolitical Factors - Ongoing tensions in the Middle East, particularly related to Iran's nuclear program, have heightened demand for gold as a safe-haven asset [3][5]. - President Trump's statements regarding potential military action against Iran have further escalated concerns, impacting market sentiment [3].