Gold Slides Under Pressure as Bears Take Control – June 18, 2025
The gold market enters June 18, 2025, under renewed selling pressure, struggling to regain ground above the critical pivot level of $3395. A confluence of technical signals—particularly the bearish RSI—suggests continued downward momentum in the intraday session.
The recent failure to sustain gains above the $3400 psychological mark has prompted sellers to re-enter the market, dragging prices closer to key support levels. Here’s a comprehensive technical breakdown, strategy tips, and important levels to watch in today’s gold session.
Intraday Technical Setup: Gold (XAU/USD)
- Pivot Point: $3395.00
- RSI Outlook: Bearish, hovering below the neutral 50 mark
Preferred Scenario – Bearish Outlook:
- Entry: Below $3395.00
- Target 1: $3360.00
- Target 2: $3345.00
Alternative Scenario – Bullish Reversal:
- Entry: Above $3395.00
- Target 1: $3410.00
- Target 2: $3421.00
RSI and Momentum Analysis
The Relative Strength Index (RSI) is currently reflecting a bearish bias, having dipped below the 50-neutral threshold. This indicates growing downside pressure and lack of buyer conviction at higher levels. Unless the RSI reverses above 50 with volume support, sellers are likely to dominate in the short term.
Key Technical Levels
Support Zones:
- Primary Support: $3360.00
- Secondary Support: $3345.00
Resistance Levels:
- Immediate Resistance: $3395.00 (pivot)
- Extended Resistance: $3410.00 & $3421.00
Failure to hold above $3395 may confirm further weakness, pushing the price to test the $3360 handle. Below that, bears could eye $3345, a level previously defended during May pullbacks.
Price Action Insights
- Gold continues to post lower highs, indicating an ongoing short-term downtrend.
- Multiple bearish candlesticks near the $3400 zone reflect rejection and bearish pressure.
- Price action remains below both the 20-period and 50-period moving averages on the 1-hour chart, further confirming the bearish setup.
Fundamental Factors Influencing Gold Today
- Stronger U.S. Dollar: The dollar remains resilient amid hawkish Fed remarks, denting gold’s appeal.
- Bond Yields Edge Higher: Rising U.S. Treasury yields weigh on non-yielding assets like gold.
- Global Risk Sentiment: Reduced geopolitical tensions and stable economic data from major economies are pushing investors toward risk assets, sidelining gold.
- Inflation Monitor: Traders remain cautious ahead of upcoming U.S. CPI data later this week, which could significantly shift sentiment.
Gold Trading Tips for June 18, 2025
- Monitor RSI: A drop below 40 could signal acceleration toward $3345.
- Use Breakout Confirmation: Look for hourly close below $3360 before scaling into shorts.
- Position Sizing: Manage risk with tight stop-losses near $3405 if shorting below pivot.
- Watch Market News: Fed commentary or inflation data surprises can lead to sharp reversals.
Frequently Asked Questions (FAQs)
Q1: What is the key pivot level for gold today?
A1: $3395.00 is the intraday pivot level.
Q2: Is gold bullish or bearish for June 18, 2025?
A2: Gold shows a bearish bias below the pivot level.
Q3: What are the key downside targets?
A3: The bearish targets are $3360.00 and $3345.00.
Q4: What would invalidate the bearish setup?
A4: A sustained move above $3395.00 with bullish candlesticks could negate the bearish outlook.
Q5: Is RSI favoring bulls or bears?
A5: RSI is bearish, trading below the 50-neutral zone.
Q6: How should traders respond to volatility?
A6: Use trailing stops and avoid over-leveraging. Trade with confirmation, not assumptions.
Q7: What news could impact gold today?
A7: U.S. CPI preview, Treasury yield movements, and Federal Reserve member speeches.
⚠️ Disclaimer:
This content is for informational purposes only and does not constitute investment advice. Trading precious metals involves significant risk and may not be suitable for all investors. Please perform your own research or consult a financial advisor before making trading decisions.
