Demand for the yellow metal—long considered a safe haven in times of uncertainty extended its five-day rally after breaking above $3,400 and moving within reach of its April record high near US$3,500.
Spot gold has surged nearly 4% this week as Israeli airstrikes on Iran reignited fears of a wider Middle East conflict. Israel said it targeted nuclear and missile facilities, accusing Tehran of defying US-led efforts to restrict its nuclear program.
President Trump blamed Iran, citing its refusal to meet US demands.
Adding to gold’s shine, softer US inflation data earlier in the week boosted expectations of Federal Reserve rate cuts.
While the Fed is widely expected to keep rates steady at 4.25%–4.50% during its two-day policy meeting, which concludes on Thursday Sydney time (Wednesday in New York), markets are focused on any signals indicating a potential easing.
Trump has ramped up pressure, calling Fed Chair Powell a “numbskull” and hinting at possible intervention.
Technically, the Relative Strength Index (RSI) remains in positive territory, nearing the overbought zone.
The Moving Average Convergence Divergence (MACD) has improved, signalling a bullish bias.
Meanwhile, the Average Directional Index (ADX) shows strengthening bullish momentum as the trend gains traction.
With geopolitical tensions and US fiscal concerns providing a supportive backdrop, the rally is likely to extend toward the key $3,500-25 level.
Initial support is seen at $3,426–32, with stronger support at $3,411–16, which may cushion any near-term pullbacks.
Daily Chart Spot Gold
