Gold Price Forecast: XAU/USD is testing $3,340 support under growing bearish pressure

LONDON (June 20) Gold (XAU/USD) is trading lower on Friday as easing concerns of a regional war in the Middle East have undermined demand for safe havens. The precious metal has extended its reversal from weekly highs, near $3,450, and is on track for a 2.75% weekly decline on its worst weekly performance in six weeks.

US President Donald Trump calmed markets on Thursday, affirming that he will take two weeks to decide whether to attack Iran, easing fears of a full-blown war of unforeseeable consequences.

Beyond that, news that European officials are in talks with Iranian delegates has boosted hopes of a negotiated resolution of the conflict, triggering a risk rally to the detriment of Gold.

FXStreet