Gold Price Remains Stable Near $2,000 Amid Geopolitical Tensions and USD Consolidation

The GOLD price (XAU/USD) exhibits limited fluctuations during the Asian session on Friday, hovering near the $2,000 psychological level, which it touched earlier this week. The recent escalation of geopolitical tensions in the Middle East, marked by Pakistan’s retaliatory airstrikes inside Iran and ongoing US-Houthi clashes in the Red Sea, has bolstered the demand for the safe-haven precious metal.

Furthermore, the US Dollar (USD) has maintained a sideways consolidative trend for three consecutive days, providing additional support to the GOLD price. However, the anticipation of higher US Treasury bond yields, fueled by reduced expectations of an early Federal Reserve (Fed) interest rate cut, has the potential to limit gains for gold.

Despite these factors, the clash between US-led forces and Iran-backed Houthi rebels in the Red Sea continues, contributing to the appeal of gold as a safe haven amidst a relatively stable USD.

In the technical analysis, the GOLD price shows signs of potential bullish momentum, targeting levels around $2,065.70, although it must breach $2,031.50 for confirmation. Conversely, a drop below $2,016.90 could reactivate a correctional bearish trend, with a primary target at $1,977.46.

Today’s expected trading range is between $2,010.00 (support) and $2,045.00 (resistance), with an overall bullish bias for the day.

Traders are advised to monitor upcoming US economic data, including the Preliminary Michigan Consumer Sentiment, Inflation Expectations, and Existing Home Sales, for short-term opportunities.

Gold XAU Live Chart