Gold Steady Near $3,390 Amid Geopolitical, Fed Moves

Gold prices have traded near $3,390 per ounce amid ongoing tensions between Israel and Iran and evolving US monetary policy. The Federal Reserve kept interest rates steady at 4.25%-4.5% and indicated two potential rate cuts in 2025, but its hawkish tone, inflation concerns, and new trade tariffs have limited gold's gains. Weak US housing data and rising jobless claims have increased gold's safe-haven appeal, while robust central bank demand supports a positive medium-term outlook. Gold mining stocks, especially in Australia, have dropped to monthly lows in response to bullion's weakness. Major banks remain split, with Citi forecasting a decline below $3,000 in coming quarters and Goldman Sachs and Bank of America maintaining bullish targets of $4,000 by 2026. The gold outlook remains highly sensitive to geopolitical and macroeconomic developments.