Gold face pressure on hawkish FedGoldOANDA:XAUUSDWiseLeoTradingGold prices remain under pressure despite the reopening of the Strait of Hormuz, which dampened oil prices to pre-conflict levels. However, oil prices do not drive short-term market focus because US inflation relies less on energy costs and more on recently spiking core factors. This stall in disinflation reinforces the Fed's hawkish stance following this month's FOMC meeting. Markets are currently scaling back the pace of tightening but still expect the Fed to implement two rate hikes through 1Q2027, triggering a bond sell-off and twisting the yield curve (selling short-duration, buying long-duration). Meanwhile, a resilient labor market boosts consumer income optimism and fuels consumption despite surging goods and services prices, which might exacerbate demand-pull inflation. Rate hike expectations fuel the strengthening US dollar index and pressure non-yielding assets like gold in the short term. Today, the US May PCE may accelerate to 4.0% YoY from 3.8% (prev. 3.8%, cons. 4.0%), highlighting persistent inflationary pressure. A higher-than-expected reading might exert further downward pressure on gold prices, whereas a softer PCE print might ease rate hike expectations and support gold. Technically, XAUUSD remains in a downtrend. The price trades below both contraction EMAs and prints lower swing lows, signaling a continuation of the bearish trend. If XAUUSD rebounds above resistance at 4055, the price may encounter next resistance at 4140. Conversely, if XAUUSD breaches support at 3932, the price might target lower support at 3900. By Van Ha Trinh - Financial Market Strategist at Exness