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Gold prices remain stable as traders weigh escalating geopolitical risks against upcoming Federal Reserve policy signals. Investors remain cautious amid rising conflict between Israel and Iran. At the same time, markets await key signals from the Fed on future rate cuts. This combination of global risk and monetary uncertainty is driving demand for gold. The metal continues to trade just below the $3,400 level, showing resilience despite recent volatility.
 

Gold Holds Steady amid Rising Middle East Tensions and Fed Rate Speculations

The ongoing conflict between Israel and Iran has created a volatile environment. On Monday, Israel attacked Iran’s state-run television network. In response, Iran promised a historic missile assault on Israeli soil. The severity of this situation is escalating fast. U.S. President Donald Trump even left the G7 Summit early, requesting an emergency meeting of the National Security Council.

This geopolitical storm is pushing investors toward safe-haven assets like gold. Simultaneously, traders are closely watching the Fed’s upcoming policy meeting. The central bank is expected to hold rates steady. However, the market widely anticipates rate cuts starting in September. This dual scenario of rising geopolitical risk and monetary easing expectations is supporting gold prices.

The U.S. dollar has edged slightly higher on pre-FOMC positioning. However, the dollar's gains appear to be limited. Traders doubt whether the Fed will keep rates elevated for a long time. Any dovish hint in the Fed’s statement or Powell’s comments could boost gold and weigh on the dollar. Investors are holding their positions, waiting for clear direction from the central bank.
 

Gold Technical Outlook: Ascending Triangle Suggests Possible Breakout

The gold chart below shows a strong bullish pattern known as an ascending triangle. This formation often signals upward continuation. Gold has been in a clear uptrend since late 2024. It climbed steadily through early 2025 before entering a consolidation phase.

The ascending triangle is defined by a rising support trendline and horizontal resistance near $3,420. Each dip has been met with higher lows, showing increasing buyer interest. Recently, the price attempted a breakout above the $3,420 level but faced immediate selling pressure. This suggests that while bullish momentum is present, traders are still cautious.

(Click on image to enlarge)

The red arrows and rounded bottoms on the chart highlight multiple bounce points off the ascending support. This shows that the bulls are defending the uptrend strongly. The latest candle indicates a rejection near the top, but the price remains supported just above the triangle line. If gold breaks and holds above $3,420 with strong volume, the next leg higher could be swift, possibly aiming for $3,500 and beyond.

Until then, the price may continue consolidating between the triangle lines. A breakdown below the support trendline would invalidate the bullish setup and could trigger a deeper correction. But current technical signals still favor the bulls.
 

Conclusion

Gold continues to trade within a narrow range as markets await the Fed's next move and monitor escalating geopolitical tensions. The technical setup remains bullish, with the ascending triangle pattern signaling potential for further gains. As long as gold holds above key support levels and uncertainty persists, the metal is likely to stay in demand as a safe-haven asset. 

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