On the other hand, geopolitical tensions add another layer of support. Russia’s weekend missile strikes on Ukraine and persistent unrest in the Middle East keep risk sentiment fragile. These developments enhance gold’s appeal as a safe-haven asset. If global conflicts escalate further, gold may break out toward new highs despite a firmer dollar.
XAUUSD Daily Chart – Bullish Consolidation
The daily chart for spot gold shows that the price is forming a bullish consolidation between the $3,700 and $3,600 region. This consolidation signals positive price action and suggests upward momentum toward the $4,000 level.
The $4,000 target is defined by the resistance of the ascending broadening wedge pattern, which supports the case for higher prices. It is also observed that gold consolidated between $3,250 and $3,500 for the past four months, and the breakout above $3,400–$3,500 has confirmed the potential for a strong move higher.
