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Gold prices surged to a two-week high near $4,800 on Wednesday, marking the fourth consecutive day of gains as the U.S. Dollar weakened against major currencies. The XAU/USD pair rose nearly 2% to $4,758, driven by speculation that the Middle East conflict may soon end, reducing geopolitical risks and boosting safe-haven demand. The retreat in the Greenback, which fell below key resistance levels, further supported bullion's rally as investors shifted capital to alternative assets.
This move signals a shift in market sentiment toward risk-off strategies, with traders increasingly favoring gold as a hedge against currency volatility and potential inflation. The Dollar's depreciation, fueled by expectations of Fed rate cuts and Middle East de-escalation, has amplified gold's appeal. Technical indicators show the $4,700 level now acts as a dynamic support, with a potential breakout above $4,850 likely to trigger further buying momentum.
For Gulf investors, the sustained gold rally aligns with regional trends of portfolio diversification into commodities. Traders should monitor the Fed's policy statements and Middle East diplomatic developments, as either could reverse the current momentum. Key technical levels to watch include $4,800 (psychological barrier) and $4,700 (support zone), with the Dollar's performance against the Euro and Yen serving as critical cross-market signals.
