Gold Enters High-Risk Zone Amid Geopolitical Tensions, Rate Cut Expectations

Key Takeaways:Continued Iran-Israel missile exchanges have pushed gold into a high-risk buffer zone.CTA net short positions drop below 30,000 lots, signaling increased market uncertainty.With no major data this week, gold is being driven by geopolitics and rate cut speculation.June 17, 2025 – Gold has entered a high-risk buffer zone, driven by escalating geopolitical tensions and shifting interest rate expectations, according to Jinshi Data. Ongoing missile exchanges between Iran and Israel over the weekend have heightened global risk sentiment, boosting gold's appeal as a defensive asset.Market Uncertainty GrowsTraders are showing caution, with CTA (Commodity Trading Advisor) net short positions falling below 30,000 lots, reflecting broader uncertainty about short-term gold price direction.With no major economic data releases expected this week, markets are closely watching:Geopolitical developments in the Middle EastEvolving expectations for U.S. interest rate cutsAnalysts warn that gold could remain volatile as investors weigh these factors and adjust positions accordingly.