Gold Price Holds Steady Amid Safe-Haven Rush, Fed Rate Cut Bets Support XAU/USD

Gold Price Holds Bullish Trajectory as Risk-Off Sentiment Deepens

Gold (XAU/USD) extended its winning streak into the third consecutive session on Friday, buoyed by heightened geopolitical tensions and renewed safe-haven demand. The yellow metal trades near its highest level since April 22, holding firm during early European hours.

The escalation in Middle East tensions, coupled with uncertainty in global trade and macroeconomic risks, is keeping investor appetite away from riskier assets. As a result, gold has emerged as a preferred asset during this flight to safety.

Related Insight: USD Index Forecast: Risk-Off Mood Favors Gold vs USD

Fed Rate Cut Bets Add to Bullish Momentum

In addition to global instability, expectations that the Federal Reserve may cut interest rates in 2025 further enhance gold's appeal. As a non-yielding asset, gold benefits from lower interest rate environments, attracting more investors amid dovish Fed outlooks.

However, a modest recovery in the US Dollar (USD) from its March 2022 lows has slightly restrained gold's gains. Still, the fundamental outlook remains tilted in favor of the bulls.

XAU/USD Technical Overview

• Resistance: $2,420 (April high)
• Support: $2,360 (recent breakout zone)
• Momentum: Bullish as long as price holds above 9-day EMA and RSI stays above 50

Gold may continue its upward movement if geopolitical fears and Fed dovish expectations persist. Traders should watch for further headlines related to Israel-Iran conflict and any surprise shifts in US monetary policy guidance.

Conclusion

With traditional safe-haven flows intensifying and Fed rate cut speculation rising, gold remains well-supported despite some USD strength. A sustained break above resistance could open the door for a test of $2,450 in the near term.