Gold Price: XAU/USD reaches highs past $4,630 on geopolitical tensions

LONDON (January 14) Gold (XAU/USD) extends gains on Wednesday, reaching a fresh all-time high above $4,630 ahead of the US session opening. Precious metals remain firm, underpinned by safe-haven demand, amid geopolitical tensions and moderate US inflation figures.

US President Donald Trump urged Iranians to keep protesting on Tuesday, promising them that “help is on its way, as the victims of Tehran’s repression likely extend into the thousands. Meanwhile, US inflation figures have curbed expectations of an immediate Federal Reserve rate cut, though they keep hopes of two rate cuts in 2026 alive.

Technical analysis: Gold’s rally starts to look overstretched

XAU/USD trades at record highs at $4,634 at the time of writing. The bullish bias remains in play with moving averages trending higher. Technical indicators, however, are starting to give signs of an overstretched rally.

The 4-Hour Relative Strength Index (RSI) stands just below overbought levels, revealing a bearish divergence. The Moving Average Convergence Divergence (MACD) turns lower with the histogram contracting, which suggests that the bullish momentum is stalling.

Above $4,630, the next targets would be at the 127.2% and the 161.8% Fibonacci extensions of the January 8-12 rally, at $4,689 and $4,763, respectively. Support is seen at Tuesday's low, near $4,570, and the January 2 low, right below $4,500.

FXStreet