Gold rebounds from two-week low as markets assess Iran-Israel ceasefire stability

Gold prices held modest intraday gains on Wednesday, recovering from a two-day losing streak that dragged it below $3,300 to a two-week low. The rebound was supported by growing expectations of a potential Fed rate cut, following Chair Powell’s wait-and-see stance while keeping the door open for policy easing if inflation and labor market conditions weaken.

Geopolitical tensions also underpinned safe-haven demand, as renewed hostilities between Israel and Iran cast doubt over the durability of their ceasefire. An Israeli strike on Tehran and an Iranian missile attack post-ceasefire announcement heightened market caution.

However, a broadly positive tone in global equity markets limited further upside for gold. Traders remain cautious and await stronger buying signals ahead of key US economic data due later this week.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold has shown a sharp recovery from the 55-SMA on the daily chart but continues to trade below the 20-SMA, indicating lingering downside pressure. On the 4-hour chart, a Tweezer Bottom formation signals potential short-term support, while the 1-hour timeframe shows consolidation, reflecting indecision among market participants.

Weekly Trend: Neutral

Intraday Trend/ Intraday Strategy: The intraday trend remains Bearish to Neutral and favours buying near support levels and selling near resistance zones.

Major Support: 3322, 3300, 3292
Major Resistance: 3335, 3338, 3365

However, a broadly positive tone in global equity markets limited further upside for gold. Traders remain cautious and await stronger buying signals ahead of key US economic data due later this week.ChatGPT said:Gold prices (XAU/USD) held modest intraday gains on Wednesday, recovering from a two-day losing streak that dragged it below $3,300 to a two-week low. The rebound was supported by growing expectations of a potential Fed rate cut, following Chair Powell’s wait-and-see stance while keeping the door open for policy easing if inflation and labor market conditions weaken.