Gold (XAU/USD) extended its gains for the fourth consecutive day on Wednesday, trading comfortably above $4,100 despite a risk-off market environment driven by rising geopolitical tensions in Iran and surging Oil prices [1]. The precious metal has rallied nearly 2.5% so far this week and is on track for its best weekly performance in more than three months [1]. The market's risk aversion is fueled by concerns that the US-Iran conflict could escalate, especially after US President Donald Trump threatened to strike nuclear facilities, a move Tehran warned could broaden the conflict throughout the region [1].
Additionally, reports that three Saudi Arabian Oil tankers reversed course in the Red Sea following the Houthis’ announcement of a blockade have pushed Oil prices higher, which in turn has supported the US Dollar due to its close correlation with Crude prices since the onset of Iran’s war [1]. Despite some hesitation during Wednesday's European session, gold maintained a bullish immediate bias, trading at $4,120 after breaching the downward trendline resistance from late May highs [1]. Technical indicators such as the 4-hour Relative Strength Index (14) in the mid-60s and a positive MACD suggest that buyers remain in control [1].
Key resistance levels for XAU/USD are identified at $4,140 and $4,200, corresponding to the July 9 and July 3 highs, respectively, which may challenge further upside momentum. Should gold break above these levels, the next target is the mid-June highs near $4,360 [1]. On the downside, immediate support is seen at the broken trendline zone around $4,020, with further support at the year-to-date lows of $3,950 and the late October 2025 low just below $3,900 [1].
CONCLUSION
Gold's strong performance above $4,100 reflects heightened investor demand for safe-haven assets amid escalating geopolitical risks and rising Oil prices. Technical indicators point to continued bullish momentum, though key resistance levels may test further gains. The market remains sensitive to developments in the US-Iran conflict and Oil market dynamics.