Gold Price Eyes $3,333 Breakdown as Israel-Iran Ceasefire Sparks Risk-On Sentiment

Despite U.S. President Donald Trump announcing a ceasefire between Israel and Iran, gold (XAU/USD) remains under technical pressure...

Written by: Arslan Butt • Tuesday, June 24, 2025 • 2 min read

• Last updated: Tuesday, June 24, 2025

Quick overview

Despite a ceasefire announcement by President Trump, gold remains under pressure due to escalating geopolitical tensions.
Tehran's missile strikes and diplomatic interventions have increased market uncertainty, yet gold is trending downward.
Technical indicators show a bearish structure for gold, with a critical support level at $3,333 that, if broken, could lead to further declines.
Traders are advised to consider a short position below $3,330, while remaining cautious of potential short squeezes if buyers defend the trendline.

Despite U.S. President Donald Trump announcing a ceasefire between Israel and Iran, gold (XAU/USD) remains under technical pressure as geopolitical tensions escalate. Tehran fired multiple waves of missiles early Tuesday, killing three in Beersheba, even as it signaled a willingness to pause attacks—if Israel halts aggression. Explosions near Tel Aviv and a flurry of diplomatic activity, including intervention by Qatar and the U.S., have stirred market uncertainty.

While headlines might suggest a safe-haven surge, the chart tells another story: gold is slipping toward a crucial ascending trendline near $3,333. This level, drawn from June’s early swing lows, has historically acted as a launchpad for bullish reversals—but this time, it’s looking fragile.

Price Action Reveals Bearish Intent

Gold’s short-term technical structure shows a clear descending channel forming since mid-June, marked by lower highs and fading bullish momentum. Price has broken beneath the 50-period EMA on the 2-hour chart, which has now started to curve downward—a sign that bears are slowly taking the reins.

Recent candles show indecision: small bodies with upper wicks, often referred to as spinning tops, suggest failed bullish attempts. No bullish engulfing patterns or strong reversals have emerged near support, weakening the case for a bounce.

GOLD Price Chart - Source: Tradingview — GOLD Price Chart – Source: Tradingview

MACD has flipped bearish: crossover below signal line
Histogram has turned red, signaling downside momentum
50-EMA trending downward, reinforcing bearish control

Gold Trade Setup: Breakdown Below $3,333

If gold decisively breaks below $3,333, it opens the path toward $3,314 and $3,293. A short position below $3,330, with a stop above $3,357 (recent lower high), offers a clean 2:1 risk-reward setup. If buyers defend the trendline, a short squeeze could follow—but current technicals tilt the bias toward a bearish continuation.

With the world watching the Middle East, the market may still reward patience over panic. Technicians, however, are laser-focused on price—not politics.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.