Spot gold prices have undergone dramatic changes. Pay attention to the Federal Reserve Chairman's remarks this evening.

After the news broke that Trump announced the Iran ceasefire had taken effect, the spot gold price experienced a sharp reversal. As of press time during the European session on Tuesday (June 24), spot gold continued to decline, trading at $3,327.79 per ounce, down 1.20% for the day.

【News Flash】

Tonight at 22:00, Federal Reserve Chair Jerome Powell will deliver his semi-annual Monetary Policy Report testimony, which has undoubtedly become the focal point of global financial markets. According to the latest reports, Powell's testimony will provide a detailed analysis of the current U.S. economic conditions, inflation trends, and the outlook for monetary policy.

Judging from recent signals released by the Federal Reserve, markets remain rife with speculation about its policy direction. Analysts note that if Powell maintains his previously hawkish tone during the testimony—emphasizing inflation concerns and sustaining (or even hinting at further) monetary tightening—this could significantly bolster the U.S. dollar.

A stronger dollar typically triggers global capital flows back to the U.S., diminishing the appeal of dollar-denominated gold. In the forex market, non-USD currencies would likely face broad downward pressure: EUR/USD and GBP/USD could extend declines, while USD/JPY may rally in the short term. Historical patterns show that when Powell struck a relatively hawkish stance in the past, the U.S. Dollar Index (DXY) surged rapidly, with EUR/USD and other major pairs experiencing pronounced drops.

Investors should remain vigilant, as any hawkish signals from Powell could exacerbate the downward pressure on gold prices. Against the backdrop of the recent decline triggered by easing Middle East tensions, gold may face a further sharp sell-off.

This is because gold maintains a strong inverse correlation with the U.S. dollar—a stronger greenback typically weighs directly on bullion prices.

Given current market uncertainties, investors should closely monitor Powell's remarks and implement preemptive risk management measures to navigate potential sharp fluctuations in gold prices.

【Technical Analysis of Gold】

Today, the gold price plummeted sharply, directly breaking through the key support level. From the daily chart perspective, the moving average system has begun to show a bearish alignment trend, with the short-term moving average crossing below the long-term moving average, indicating that bearish forces are dominating.

Additionally, the Relative Strength Index (RSI) has also declined rapidly, entering the oversold zone, which may suggest some potential short-term rebound demand for gold. However, the overall downward trend remains quite evident for now. Unless there is a significant positive catalyst, gold prices are likely to continue their downward movement.