Insights 
VT 
Key Points
- XAUUSD held above 4,600 despite mild profit-taking after fresh record highs.
- Fed independence concerns and Iran-related tensions continue to underpin gold demand.
Spot gold (XAUUSD) edged lower in early trading but continued to hold above the $4,600 level, signalling resilience after the metal reached a fresh record high in the previous session.
Prices slipped modestly as traders locked in short-term profits following a steep rally, but the broader structure remains constructive.
In futures markets, New York contracts eased around 0.3% to $4,602.50 per ounce. Spot prices remained close to $4,590, keeping XAUUSD firmly anchored near historic highs despite the minor retracement.
Dollar Stabilises But Pressure Persists
The US dollar attempted a modest rebound, with the dollar index rising 0.1% to 98.98. The move followed recent heavy selling sparked by concerns around the independence of the Federal Reserve.
Analysts noted that the dollar had stabilised after the sell-off triggered by fears that the Trump administration may be exerting pressure on the Fed.
Even so, the rebound has so far failed to dent underlying support for gold, as investors continue to hedge against institutional and policy risks in the US.
Geopolitical Risks Reinforce Safe-Haven Demand
Geopolitical tensions remain a key pillar supporting XAUUSD. Rising risks linked to Iran have added to bullion’s appeal, particularly after Donald Trump announced a 25% tariff on any country conducting business with Tehran.
The move has heightened fears of broader economic fallout and trade disruption, reinforcing demand for safe-haven assets. Gold has continued to attract inflows as investors seek protection from geopolitical escalation and policy uncertainty.
Technical Analysis
Gold remains in a strong uptrend, consolidating near its recent highs after a parabolic rally from mid-2025 lows around 3,250.
The 5, 10, and 30-day moving averages are stacked bullishly, providing dynamic support, while price action continues to form higher lows with relatively shallow pullbacks—signs of sustained momentum.
Although the MACD line has flattened, it remains above the signal line and zero, suggesting bullish bias is intact. The histogram is back in positive territory, hinting at renewed upside pressure.
As long as price holds above 4,500, gold is likely to continue grinding higher, with a potential breakout above 4,600 unlocking the next leg up.
Cautious Outlook as Volatility Lingers
XAUUSD remains supported by a combination of macro and geopolitical drivers, even as short-term profit-taking introduces volatility.
Concerns around Fed independence, coupled with rising Middle East tensions, continue to favour gold over risk-sensitive assets.
While brief consolidations may persist after the sharp rally, the underlying environment suggests bullion remains well-positioned as long as policy uncertainty and geopolitical risks stay elevated.
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