Gold Cools After Rally as Traders Book Profits and Technical Signals Flash Pause

Gold prices retreated modestly over the weekend, ending a multi-day rally that had pushed the metal close to its two-month highs. Official TradingView daily and four-hour charts published June 16, 2025, confirm the pullback.

The spot price dropped from an intraday high of $3,451 to $3,418 per ounce by early Monday. This move reflects a clear shift in sentiment as the market digested recent gains and traders took profits after a week dominated by geopolitical risk and safe-haven flows.

The technical picture shows the rally paused rather than reversed. On the daily chart, gold remains above all major moving averages, including the 20, 50, 100, and 200-day lines.

The price action sits just below the upper Bollinger Band, which often signals a cooling of momentum. The Relative Strength Index (RSI) stands at 60.16, down from last week’s peak, and the Moving Average Convergence Divergence (MACD) histogram has begun to flatten.

These developments indicate that bullish momentum slowed, and the market entered a consolidation phase. The four-hour chart reinforces this view, with gold slipping from its recent peak and the RSI dropping to 61.74 after approaching overbought territory.

The MACD bars are shrinking, showing fading upward momentum. Price action now hovers above the 20-period moving average, but the pullback signals that buyers paused after a strong run.

Fundamental factors continue to support gold’s longer-term uptrend. Over the last week, escalating conflict between Israel and Iran drove investors into gold, pushing prices to a near two-month high.

Official data shows spot gold rose for four consecutive sessions before the weekend, with safe-haven demand dominating as both countries exchanged strikes and urged civilians to prepare for further escalation.

Central Banks Boost Reserves and Gold Demand

Central banks, especially in Asia, continued to add to reserves, seeking to reduce exposure to the US dollar and hedge against sanctions and inflation. Asian investment in gold rose 22% in the first quarter, with Poland and China leading official sector purchases.

Meanwhile, the US dollar weakened, with the Bloomberg Dollar Spot Index falling to a seven-week low, making gold more attractive to international buyers.

Domestic gold prices in key Asian centers, including Hanoi, remained stable over the weekend, with little fluctuation reported. The spread between buy and sell prices widened, reflecting increased volatility and demand.

The week closed with a strong upward move, but the weekend saw a clear pause as traders reassessed risk and locked in profits. Looking ahead, analysts expect gold to remain sensitive to geopolitical developments and monetary policy signals.

The technical setup suggests the market is digesting gains, with support from moving averages likely to attract buyers on further dips. If tensions in the Middle East ease or the US Federal Reserve surprises with policy moves, the rally could stall further.

However, the broader uptrend remains intact, and buyers are expected to step in on any meaningful pullback. The story behind the figures is one of a market cooling after a powerful rally, with traders watching closely for the next catalyst.

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