Gold prices are showing signs of a bullish rebound as the Federal Reserve maintains its current interest rate policy amidst rising global economic uncertainty. The Fed’s decision to pause further rate hikes has helped support gold, which is particularly sensitive to interest rate movements and the strength of the US dollar. Lower rates typically reduce the opportunity cost of holding non-yielding assets like gold, making it a more attractive option for investors seeking stability.

Geopolitical tensions and renewed concerns about trade relations—particularly fears of increased tariffs between the US and China—have also played a significant role in gold’s recent price action. Investors often turn to gold as a safe haven during times of uncertainty, driving prices higher when risk-off sentiment prevails.

Technical analysis suggests that gold has broken through the important $3,400 per ounce resistance level, establishing a foundation for further gains if this level continues to hold. Should gold achieve a sustained daily close above $3,400, it could pave the way for a move toward the $3,800 region in the coming months. However, any rejection at this level or renewed risk appetite in broader markets may trigger a move back toward key support in the $3,375 to $3,350 zone.

Market sentiment remains mixed, with traders split on gold’s direction, reflecting broader indecision in the markets. Nevertheless, the backdrop of macroeconomic challenges, a cautious Fed, trade policy uncertainty, and a weaker dollar all tilt the risk profile in favor of further bullish momentum for gold. Investors should keep a close eye on both upcoming US economic data and global trade developments, as these will likely determine the next major move for gold prices.