# Gold slides to two‑week low as USD rises, safe‑haven demand wanes

**Published:** 2026-06-23T14:23:27.147Z  
**Topic:** Gold  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/3953975a-4912-4fe3-bd43-9cfaaf724972

Gold fell 0.4% to $3,323.84, its lowest level in two weeks, while the US dollar index rose 0.5% on strong trade news and hawkish Fed expectations.

Gold slipped 0.4% to $3,323.84 on Monday, marking a fourth straight daily loss and the lowest price in two weeks, as a stronger dollar and fading safe‑haven demand pressured the metal【2】.  

| At a glance | |
|---|---|
| Price | $3,323.84 (‑0.4%) |
| Weekly change | ‑0.4% (second consecutive weekly loss) |
| USD Index | +0.5% (third session up) |
| Fed outlook | Rates expected unchanged at next meeting (97% probability) |

## Market backdrop  
The decline came after the US‑EU trade framework was signed on Sunday, easing fears of a broader trade war and lifting risk appetite. That optimism, combined with upbeat PMI data, helped the US dollar index climb 0.5% against a basket of currencies, a move that traditionally drags gold lower because the metal is priced in dollars【2】. At the same time, the Federal Reserve’s upcoming policy meeting is expected to keep rates steady for the fourth consecutive meeting, with a CME FedWatch tool showing a 97% chance of no change and only a 3% chance of a 25‑basis‑point cut【2】. The prospect of continued “hawkish” tone from Fed officials, as noted in FXStreet’s commentary, adds further support to the greenback and weighs on non‑yielding gold【1】.

## Technical and fundamental factors  
On the technical side, gold remains below its 100‑period simple moving average on the 4‑hour chart, and the Relative Strength Index sits at 37.17, indicating weak momentum【1】. Although the MACD has turned marginally positive, the price is still trapped in a corrective zone, suggesting any rebound would be modest. Fundamentally, the metal’s safe‑haven appeal was muted despite ongoing US‑Iran talks, as skepticism over a final deal persisted and geopolitical risk premiums stayed limited【1】. The combination of a firming dollar, profit‑taking from a five‑week high of $3,438.94, and expectations of higher borrowing costs if the Fed raises rates later in the year, kept buying pressure subdued.

## What to watch  
- **US CPI and PCE data** later this week, which could sharpen expectations on Fed policy and influence the dollar.  
- **Fed meeting minutes** on Wednesday, where any hint of future rate hikes may further support the greenback and suppress gold.  
- **Key technical level** at $4,311.19 (100‑period SMA); a sustained break above could open the path to a more constructive recovery【1】.  

Gold’s slide underscores how quickly safe‑haven demand can evaporate when the dollar strengthens and market sentiment turns positive, even amid lingering geopolitical uncertainty. The metal’s next move will hinge on whether inflation data or Fed commentary revive risk‑off sentiment enough to offset the dollar’s momentum.

## Sources
1. Fxstreet — [Gold Forecast, News and Analysis (XAU/USD) - FXStreet](https://www.fxstreet.com/markets/commodities/metals/gold)
2. Economies — [Gold sharpens losses to two-week trough amid positive sentiment](https://www.economies.com/commodities/gold-news/gold-sharpens-losses-to-two-week-trough-amid-positive-sentiment-46964)

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Cite as: TrendWatcher, "Gold slides to two‑week low as USD rises, safe‑haven demand wanes", https://www.trendwatcher.in/article/3953975a-4912-4fe3-bd43-9cfaaf724972