Gold (XAU/USD) keeps modest gains below the $5,200 level during the Asian session on Wednesday, trading near the monthly high reached a day earlier. Ongoing geopolitical tensions continue to support the metal, as the United States strengthens its military presence in the Middle East ahead of the third round of US-Iran nuclear talks scheduled for Thursday. This backdrop boosts demand for the safe-haven asset. At the same time, mild selling pressure on the US Dollar (USD) adds further support and helps lift prices intraday.
Even though the US Federal Reserve maintains a firm policy stance and recent economic data has been positive, investors remain cautious due to renewed uncertainty surrounding President Donald Trump’s trade policies. Minutes from the January FOMC meeting showed several policymakers believe rate cuts may not be appropriate until inflation clearly moves back toward target. Recent remarks from multiple Fed officials also suggest the central bank is not rushing to ease policy while inflation remains persistent.
Boston Fed President Susan Collins stated it would be appropriate to keep rates within the current range for some time, while Richmond Fed President Thomas Barkin noted monetary policy is “well-positioned” to manage economic risks. Meanwhile, the Conference Board’s Consumer Confidence Index rose to 91.2 from January’s revised 89.0. However, the US Dollar struggles to gain momentum as investors worry about ongoing uncertainty tied to global tariffs.
The US has already implemented a 10% tariff on all non-exempt imports, and the White House is considering raising duties to 15%. Concerns about retaliation and disruptions to global supply chains are weighing on the USD and indirectly supporting gold prices. Still, relatively stable equity markets could limit aggressive bullish positioning in the precious metal.
Technically, gold showed resilience above the $5,100 level on Tuesday, an area that has become a key pivot zone. The rebound favors buyers and indicates the broader trend remains upward. The positive outlook is reinforced by prices holding comfortably above the rising 200-period simple moving average near $4,930, which supports the longer-term bullish structure.
Momentum indicators also support the constructive view. The Relative Strength Index (14) is steady near 62, suggesting buying interest remains intact rather than signaling a sharp correction. Meanwhile, the Moving Average Convergence Divergence (MACD) has eased from recent highs and is flattening, pointing to consolidation within an overall uptrend instead of a confirmed top.
On the upside, immediate resistance appears around $5,215, the latest reaction high. A clear move above this barrier could open the path toward $5,240. As long as prices stay above the $5,150 support area, pullbacks are likely to be viewed as temporary corrections within the prevailing bullish trend.
On the downside, the first support lies near $5,100. A sustained drop below this level may lead to a deeper retracement toward the $5,050 zone, where buyers are expected to step in and defend the broader upward bias.
