Gold prices moved higher again during Wednesday’s Asian session, rebounding from a one-week low after the United States indefinitely extended its ceasefire with Iran. However, the market still lacks a clear view of the outlook for peace negotiations in the near term.

Earlier, the precious metal came under pressure in the previous session after Federal Reserve Chair nominee Kevin Warsh said he had made no commitment to cut interest rates if appointed by Donald Trump.

Spot gold rose 0.9% to $4,763.66 per ounce at 06:45 GMT, continuing to trade within the $4,700-$4,900 per ounce range that has held for the past two weeks.

Peace talks remain unclear

President Donald Trump announced an indefinite extension of the ceasefire with Iran, allowing diplomatic efforts to continue.

Even so, the outlook for peace remains highly uncertain. Talks that had been expected to take place earlier collapsed at the last minute, highlighting how fragile the process still is.

At the same time, the United States’ continued naval blockade against Iran has drawn a strong response from Tehran, which views it as an act of war.

Since the conflict began, gold has struggled to play its traditional safe-haven role. Instead, the metal has increasingly behaved more like a risk asset, with price swings becoming more closely aligned with equity markets as geopolitical developments unfold.

In the short term, gold’s direction will still depend heavily on broader market risk sentiment, which remains closely tied to the progress of negotiations and the degree of escalation in the conflict.

Technical analysis: The corrective phase continues

After confirming the ending diagonal pattern, gold prices declined in line with the expected scenario. However, during this stage, a “correction within a correction,” the market typically does not move in a clear trending structure. Instead, it tends to alternate between rebounds and pullbacks, forming a sideways consolidation range.

From a wave structure perspective, gold is still moving within the upward leg from white wave A to white wave B, with an internal a-b-c structure, and the market is now entering the corrective move from wave a down to wave b.

At this stage, the two most common structures are ABC and ABCDE. Under the ABC scenario, prices may continue to move lower. By contrast, if an ABCDE structure develops, the market will more likely trade sideways within a narrow range before determining its next direction.

Conclusion

Gold is entering a corrective and accumulative phase, as neither macroeconomic nor technical factors are currently strong enough to create a clear trend.

In the short term, the market is likely to fluctuate within a broad range, making it more suitable for flexible scalping strategies rather than holding longer-term positions.

Closely tracking the wave structure during this phase is essential, because once the correction is complete, the market will likely re-establish its main trend with a larger price range and stronger volatility.

Ebila AI continues to monitor market developments closely, combining both fundamental and technical analysis to help investors gain a more comprehensive view and make more effective decisions.

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