Gold Holds Above $3,300 as Fed Cut Bets, Geopolitical Tensions Weigh on USD

Gold Price Holds Above $3,300 Amid USD Weakness, Geopolitical Tensions

Gold (XAU/USD) extended its bullish momentum for a third consecutive session on Wednesday, trading near a two-week high and holding above the $3,300 mark during early European hours. The move is driven largely by persistent selling pressure on the US Dollar, which is undercut by growing expectations of Federal Reserve rate cuts in 2025 and deepening fiscal concerns following last week’s US credit rating downgrade by Moody’s.

In addition to domestic economic uncertainties, investors are also responding to heightened geopolitical risks. Rising tensions in Syria and renewed trade friction between the US and China have reinforced the safe-haven appeal of gold. These developments helped the precious metal break decisively above the $3,250–$3,255 resistance zone and push through the psychological $3,300 level.

Fed policymakers have recently expressed caution about the US economic outlook, adding to bearish sentiment around the dollar. With the macro environment remaining fragile and risk sentiment subdued, the technical outlook for XAU/USD remains bullish as traders eye higher levels in the sessions ahead.