Gold Rallies Near Two-Month Highs as Geopolitical Tensions

 Key Takeaways:

*Gold consolidates near key resistance amid Middle East conflict escalation

*Israel-Iran conflict fuels demand for safe-haven assets

Market Summary:

Gold prices rallied to near two-month highs as rising geopolitical tensions and weaker U.S. economic indicators drove investors toward safe-haven assets. Prices are consolidating around key technical resistance levels after Israel launched airstrikes on Iranian nuclear and oil facilities, stoking fears of a wider regional conflict.

Iran is expected to respond, prompting Israel to declare a state of emergency while the U.S. prepares for potential regional escalations, including civilian evacuations. The uncertainty has sharply increased geopolitical risk premiums, further lifting demand for gold.

Beyond geopolitical factors, macroeconomic concerns are also supporting bullion. Weak U.S. inflation readings last week—alongside sustained concerns about the federal debt ceiling—are fueling speculation that the Federal Reserve may soon pivot toward a more dovish monetary policy stance.

The U.S. Dollar Index (DXY) continues to slide, reinforcing bullish sentiment in gold markets. Investors now turn their attention to this week’s FOMC rate decision, where any hint of policy easing could amplify upside momentum for gold.

Technical Analysis:

GOLD, H4: 

Gold prices have broken above the previous Fibonacci expansion level of $3400.00, with continued bullish momentum supported by safe-haven flows and a weakening dollar. If the upward trend holds, prices may test the next resistance at $3465.00, followed by $3555.00.

However, both RSI and MACD indicators are signaling potential overbought conditions. Should momentum ease, a pullback toward the $3400.00 support is likely. A break below this could see gold consolidating back toward $3335.00.

Resistance Levels: 3465.00, 3555.00
Support Levels: 3335.00, 3255.00