Gold prices (XAU/USD) climbed above $2,420 on Wednesday, rebounding from an intraday low near $2,400. This marks the third day of gains in the past four sessions, propelling the commodity to a one-week high around the $2,419 level during the Asian session.
The upward momentum is driven by multiple factors, including heightened geopolitical tensions following an Israeli attack on Lebanon’s capital in response to a rocket strike in the Golan Heights on Saturday. This escalation in the Middle East has increased the demand for gold as a safe-haven asset.
Additionally, concerns over sluggish global economic growth and a further retreat of the US Dollar (USD) from a nearly three-week high reached on Tuesday are supporting the gold price. Despite this, market participants are cautious and may hold off on making aggressive bets until more information is available on the Federal Reserve’s (Fed) rate-cut trajectory.
Attention remains focused on the outcome of the two-day Federal Open Market Committee (FOMC) meeting, expected later today. The results of this meeting, along with ongoing geopolitical developments, will be crucial in determining the near-term direction for XAU/USD.
