Gold surges past $2,650 on Fed dovishness and broad USD weakness

Gold prices have rallied 1.1% to $2,658 per ounce, marking the highest level in three weeks as a combination of Federal Reserve dovishness, geopolitical tensions, and broad dollar weakness drives safe-haven demand. The Dollar Index has retreated 0.3% to 105.75, providing additional tailwind for dollar-denominated commodities. EUR/USD has climbed to 1.0425 while AUD/USD tests 0.6380, both benefiting from the greenback's decline. Fed officials' recent comments suggesting patience on rate adjustments have reduced expectations for aggressive tightening, supporting non-yielding assets like gold. Geopolitical risks in Eastern Europe and Middle East continue to underpin defensive positioning. Technical analysis shows gold breaking above the key $2,640 resistance level, with momentum indicators suggesting potential extension toward $2,675. The precious metal's correlation with currency weakness signals continued upside potential if the dollar remains under pressure from dovish Fed communications.