June Gold futures finished the week down 3% after producing lower highs and lower lows, pointing to a potential rounding top formation. Despite a slight daily bounce of 0.18%, the market remained heavily influenced by geopolitical developments, particularly surrounding the Strait of Hormuz. Delegations from the U.S. and Iran are reportedly traveling to Islamabad for talks; a successful reopening could unwind energy-driven inflation fears, while a breakdown would restore the market's risk premium. Looking ahead, traders are focused on next week's Federal Reserve decision. With a 99% probability of a rate hold, attention shifts to the press conference for any acknowledgment of stagflation risks, which could trigger a simultaneous repricing of Gold futures as both an inflation and growth hedge.
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