Gold prices retreated from recent all-time highs on Wednesday, as investors took profits and concerns about rising interest rates emerged.
The geopolitical situation in the Middle East continues to support gold’s appeal as a safe-haven asset, but rising interest rates and the potential for a stronger US Dollar are limiting gains.
Key Factors:
- Profit Taking: Investors are taking profits after gold prices reached new highs.
- Rising Interest Rates: The expectation of rising interest rates is weighing on gold prices.
- Geopolitical Tensions: The ongoing conflict in the Middle East continues to support gold’s safe-haven appeal.
Technical Analysis:
- Gold prices have pulled back from the $2,750 level.
- The Relative Strength Index (RSI) is overbought, suggesting a potential for a near-term pullback.
- Key support levels are at $2,750, $2,700, and $2,685.