Gold Holds Firm Amid Mixed Sentiment: Will Bulls Prevail or Bears Take Over?

Gold (XAU/USD) enters the third week of June trading steadily above the $3,340 level, maintaining bullish support. Geopolitical unrest and dollar weakness remain key drivers keeping investor interest intact. Safe-haven demand continues to act as a cushion against broader market volatility, giving gold a solid short-term base.

Despite these positive drivers, caution is growing. Quant Mutual Fund has warned of a potential 12–15% correction ahead. Their outlook reflects a belief that gold’s rally has outpaced its fundamentals, which could result in a sharp retracement if momentum fades or macro factors shift suddenly.

Technically, gold retains a favorable structure with price action above the 50-day EMA. Still, momentum appears to be weakening, as shown by a declining RSI. Resistance is seen at $3,366 and $3,392, while $3,340 and $3,300 represent critical downside thresholds for near-term trend confirmation.

Forecasts remain moderately optimistic. CoinCodex projects an upward move toward $3,562 in the next several sessions. A more ambitious projection pegs gold at $3,635 if bullish sentiment accelerates due to safe-haven demand and dovish economic signals from the U.S. Federal Reserve.

This week’s trading action will likely be influenced by whether gold can hold above $3,340. A successful push through $3,366 would revive bullish momentum. However, a failure to maintain current levels may prompt traders to lock in profits, leading to a potential drop toward $3,260.

The macroeconomic calendar will be pivotal. Inflation figures, interest rate outlooks, and geopolitical developments will shape gold's trajectory. Any Fed signals implying tighter monetary policy may pressure gold, while weaker data or geopolitical shocks could send it climbing once again.

In conclusion, gold faces a technical stalemate between strong support and waning momentum. Bulls must reclaim control soon or risk handing the market to bears eyeing a correction. The coming week could be decisive, with both risk and reward hanging in delicate balance.