Gold climbed to two week high on rising geopolitical tensions

Gold saw renewed buying interest on Wednesday, extending gains beyond $3300 level as US equity markets declined. Investor sentiment took a hit following Moody’s downgrade of US government debt from AAA to Aa1, maintaining a stable rating but with a negative outlook, prompting a flight to safety and boosting demand for the yellow metal. Meanwhile, Federal Reserve continues to strike a cautious tone, adding to the market’s risk-off mood. Fed officials on Tuesday voiced concerns about the US economic outlook, citing uncertainty surrounding President Donald Trump’s trade policies as resumed tensions between the US and China have reignited recession fears.

 Additionally, geopolitical tensions are providing further support to the yellow metal. The continued failure to secure a ceasefire between Russia and Ukraine, along with escalating unrest in the Middle East, is driving safe-haven flows and keeping investor interest tilted toward Gold.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold has broken out of an Inside Bar formation on the daily chart, signaling a continuation of the bullish momentum. The price is currently trading above the 20-day Simple Moving Average, reinforcing the underlying strength in the trend. A Doji candle on the 4-hour chart reflects temporary indecision, while the 1-hour chart shows price consolidation, suggesting a potential buildup for the next directional move.

Intraday Trend/ Intraday Strategy: The intraday trend remains bullish with a preference to buy on dips towards support zones and buying on confirmed breakouts above resistance levels. 

Weekly Trend: Bullish

Major Support: 3299, 3284, 3273 

Major Resistance: 3314, 3325, 3335