Gold Consolidates Near Three-Month High Amid Ongoing 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. The pause reflects a consolidation phase as investors weigh a mix of 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.

According to market analysts, gold's upward momentum has been building since late April, with the spot price climbing from around $2,300 per ounce to a peak of $2,450 in the past week. The metal has since pulled back slightly, trading in a narrow range as traders lock in profits and assess the sustainability of the move.

Technical 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.