Gold/USD Surges on Israel-Iran Tensions & Fed Dovish Shift

Gold prices have surged 1.8% to $2,385 per ounce as escalating Israel-Iran tensions drive safe-haven demand, while the Federal Reserve's dovish pivot provides additional support. The precious metal broke through key resistance at $2,350 following reports of increased military activity in the Middle East, sparking concerns over potential supply disruptions and regional instability. Fed officials' recent comments suggesting a pause in rate hikes have weakened the US Dollar Index by 0.6% to 104.20, making gold more attractive to international buyers. Technical indicators show strong bullish momentum with RSI at 68, approaching overbought territory. Immediate resistance lies at $2,400 (psychological level), while support has formed at $2,360 (previous resistance turned support). Traders should monitor geopolitical developments closely, as any de-escalation could trigger profit-taking, while further tensions may push gold toward the $2,450 all-time high.