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Gold prices (XAU/USD) have risen for the fourth consecutive day, reaching near $2,340 per ounce as of Thursday. The rally coincides with a weakening U.S. Dollar (USD) amid improved risk appetite driven by optimism over a potential swift resolution to the Iran war. Lower U.S. Treasury yields, which fell below 4.2% following the Federal Reserve’s dovish signals, have also supported gold’s ascent by reducing the opportunity cost of holding non-yielding assets.
The surge in gold highlights its role as a safe-haven asset amid geopolitical tensions and monetary policy shifts. A weaker USD makes gold more affordable for holders of other currencies, particularly in the Gulf and emerging markets. Traders are closely watching whether the $2,350 psychological level can hold as resistance, with a breakdown potentially targeting $2,400. Conversely, a reversal below $2,300 could trigger profit-taking and renewed USD strength.
For markets, the focus remains on the interplay between U.S. interest rates, Middle East developments, and gold’s technical structure. Investors should monitor the Fed’s next policy meeting in June for clues on rate cuts, which could further boost gold. Additionally, any escalation in Iran-Israel tensions might push prices toward the $2,500 milestone, while a de-escalation could cap gains. Key support/resistance levels to watch include $2,280 and $2,370.
