Gold Consolidates Near Three-Month High Amid Geopolitical Tensions
Gold prices have steadied near a three-month high after a sharp rally that pushed the precious metal to its strongest level since early February. This pause in gold's upward momentum is due to a consolidation phase as investors weigh various factors, including geopolitical tensions, central bank buying, and shifting expectations for U.S. interest rate cuts.
The latest surge in gold prices was fueled by renewed safe-haven demand amid geopolitical uncertainty and robust purchases by central banks, particularly from emerging markets. Additionally, softer-than-expected U.S. economic data has reinforced expectations that the Federal Reserve may begin cutting interest rates later this year, which typically supports non-yielding assets like gold.
Market analysts point to immediate support near $2,420, with a break below that level potentially opening the door to a test of $2,380. On the upside, resistance is seen at $2,450, followed by the psychological $2,500 mark.