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Gold prices have rallied to a one-and-a-half-week high, driven by heightened geopolitical risks from the Russia-Ukraine conflict and a weaker US Dollar. For the fourth consecutive day, safe-haven demand has supported the yellow metal, despite rising US bond yields, which could limit further upside. Investors are also concerned about the inflationary impact of US President-elect Trump’s proposed policies, which may restrict the Federal Reserve’s ability to ease monetary policy. Technically, gold is facing resistance near the $2,660 level, but sustained bullish momentum could push prices toward the $2,700 mark. Investors will closely watch upcoming US economic data and Fed speeches for further direction.

Key Highlights

# Gold prices climb to a one-and-a-half-week high amid escalating geopolitical risks.

# Geopolitical tensions over the Russia-Ukraine conflict bolster demand for safe-haven assets.

# Rising US bond yields could limit gold’s upside despite a weaker US Dollar.

# US economic policies under Trump may stoke inflation, supporting gold prices.

# Technical resistance near $2,660, with potential to target $2,700.

Gold prices (XAU/USD) continue to climb, marking a one-and-a-half-week high as geopolitical risks associated with the Russia-Ukraine conflict fuel demand for safe-haven assets. Gold has gained for the fourth consecutive day, benefiting from investor concerns about rising global tensions and an overall subdued US Dollar. As the conflict intensifies, particularly after Russian President Vladimir Putin's recent comments on nuclear threats, haven demand for gold has increased, pushing prices closer to the $2,660 level.

However, rising US bond yields, driven by market expectations of inflation due to proposed fiscal policies by US President-elect Donald Trump, could cap gold’s potential. These inflationary concerns are expected to limit the Federal Reserve's ability to further ease monetary policy, keeping bond yields high and providing support to the US Dollar, which could keep gold from reaching significantly higher levels.

On the technical front, gold faces strong resistance around the $2,660 mark, the 50% Fibonacci retracement level from its recent high. A breakout above this level could push prices towards the $2,670-2,672 zone, with further upside potential towards the $2,700 region. Conversely, the $2,635 area, marked by the 38.2% Fibonacci retracement, presents immediate downside support, followed by the $2,620 level.

Finally

Gold prices remain supported by geopolitical uncertainties and inflation concerns, but resistance near $2,660 may cap further gains unless a breakout occurs. Traders will be watching closely for clues from upcoming economic data and Fed comments.

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