Gold could break above \$3500 if geopolitical tensions intensify further

Gold surged to a seven-week high at \$3444 overnight after Israel’s attack on Iran intensified geopolitical tensions, triggering strong safe-haven demand and a rapid price jump.

The break above the \$3400 area—previously a strong resistance zone now turned support—has further improved the near-term outlook. A weekly close above this level would confirm a bullish signal and keep the focus on the key \$3500 target, which would mark a new record high.

The daily technical picture remains strongly bullish, though some near-term slowdown is possible due to partial profit-taking heading into the weekend and the stochastic indicator entering overbought territory.

Nevertheless, price action remains primarily driven by geopolitical developments, which are expected to continue playing a dominant role in the near term.

Based on the current tone from both sides, tensions may either ease slightly—keeping gold elevated but capped—or escalate further, which appears to be the more likely scenario at this stage.

In the case of further escalation, gold is likely to break through the \$3500 pivot and aim for higher targets at \$3589, \$3600, and \$3645 (based on Fibonacci projections and psychological levels).

Support levels at \$3410 (hourly higher base), \$3400 (psychological level), and \$3380 (intraday low) are expected to hold and maintain the bullish momentum.

Res: 3471; 3487; 3500; 3550
Sup: 3414; 3400; 3380; 3355