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Gold (XAUUSD) is holding steady above the $4,000 level as markets weigh the outlook for Federal Reserve policy and rising geopolitical tensions. Expectations for a more accommodative Fed continue to support demand. Reports also suggest that Kevin Hassett may emerge as a candidate for Fed Chair. At the same time, uncertainty surrounding a possible Ukraine–Russia agreement has sustained safe-haven interest. With few major economic releases this week, gold continues to move in response to macro developments and long-term technical strength.
 

Gold Stability Reflects Fed Uncertainty and Persistent Geopolitical Risk

Gold remains stable above the $4,000 mark, with upward momentum supported by growing expectations of a more accommodative Federal Reserve. The prospect of easier monetary policy continues to drive demand and support gold’s stability. Reports indicate that Kevin Hassett is a leading candidate for Fed Chair. His track record aligns with calls for sharply lower interest rates. This potential leadership change has strengthened the outlook for policy easing and increased demand for gold as a non-yielding safe-haven asset.  

At the same time, gold is drawing strength from persistent geopolitical risk. Comments from Russian President Vladimir Putin and other Kremlin officials indicate that a Ukraine–Russia agreement remains distant. While there are discussions about new proposals, neither side is signaling any meaningful concessions. Ukraine maintains its stance against giving up territory, and Russia has threatened to advance militarily if challenged. These conflicting messages maintain an atmosphere of uncertainty, keeping investors on edge and pushing flows into safe-haven assets.

Although the US Dollar is attempting to rebound from recent lows, gold’s upside bias remains firm. In the absence of significant economic data this week, market attention has shifted toward interest rate expectations. As a result, gold’s bullish trend has continued, even as risk sentiment shows modest improvement. With no major economic data on the schedule, gold remains driven by policy expectations and geopolitical developments.
 

Gold Breaks Out from Cup and Handle Pattern with Wedge Targets in Play

The gold chart below shows a decisive breakout from a long-term cup and handle formation. After years of consolidation below the $2,100 threshold, the price surged through this resistance, confirming a structural breakout. The breakout zone near $2,100 acted as a launch point for the ongoing rally, validating the broader bullish pattern.
 

(Click on image to enlarge)

Furthermore, an ascending broadening wedge has taken shape over a multi-year period, reflecting expanding price swings within a rising structure. Gold consistently held above the lower boundary for more than a decade, demonstrating long-term trend stability. Following the breakout from the cup and handle pattern, the price cleared major resistance. It then began accelerating toward the wedge’s upper boundary, with projected targets between $4,800 and $5,200.

Moreover, the cup and handle formation itself reflects a prolonged period of accumulation just below the $2,100 ceiling. This structure developed over several years, signaling steady long-term buying interest. The breakout from this base triggered a sharp rally, sending gold significantly higher in a short span. As long as price holds above key support, bullish momentum is expected to persist.
 

Conclusion: Bullish Setup Intact as Markets Anticipate Policy Easing

Gold continues to attract demand as markets focus on the potential for policy easing and unresolved geopolitical risks. Reports pointing to a possible leadership change at the Federal Reserve have strengthened dovish expectations, while tensions between Russia and Ukraine keep safe-haven flows intact. In the absence of key economic data, gold continues to draw support from its bullish technical setup and underlying macro drivers. 

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