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The price of gold rose to $3,303 per troy ounce on Wednesday, nearing a two-week high. The precious metal gained for the third consecutive day, following a 2% surge the previous day as investors sought safety amid heightened geopolitical uncertainty.
 

Key drivers behind the rally

Middle East Tensions: fears of escalation increased over a potential Israeli strike on Iran’s nuclear facilities, which could trigger retaliatory measures from Tehran.

US Political Uncertainty: President Donald Trump’s remarks on peace talks between Russia and Ukraine added to market unease, though he distanced himself from a mediating role.

Dollar Weakness: the US dollar remained under pressure after the Federal Reserve’s cautious economic outlook and Moody’s downgrade of the US credit rating, citing rising government debt.

Trade & Fiscal Policy: investor confidence in the dollar was further dented by uncertainty over trade tariffs and the pending vote on Trump’s proposed tax reforms.

As a result, the dollar’s weakness has made gold more attractive to international buyers.

Technical analysis: XAU/USD

H4 Chart:

(Click on image to enlarge)

• The market consolidated near 3,222 before breaking upward
• The immediate upside target of 3,312 has now been met
• A pullback to retest 3,222 (from above) is likely, followed by a potential rise towards 3,333
• MACD Indicator: The signal line remains above zero and points upward, supporting further gains

H1 Chart:

(Click on image to enlarge)

• The pair broke through 3,250 and continued its upward trajectory towards 3,333
• A short-term correction to 3,222 is expected before another push higher
• The current uptrend is viewed as corrective; once complete, a downward wave towards 3,222 may follow
• Stochastic Oscillator: The signal line is below 80 and trending downward towards 20, indicating potential near-term weakness
   

Conclusion

Gold’s rally reflects its role as a haven amid geopolitical risks and dollar softness. While technical indicators point to a temporary correction, the broader uptrend remains intact, with 3,333 as the next key resistance level.

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