Gold price is climbing again, gaining over 3% in recent trading, with rising geopolitical tensions and political uncertainty driving strong demand for the safe-haven asset. At the time of writing on Wednesday, Gold (XAU/USD) is trading near $3,310, following a fresh wave of risk-off sentiment after reports that Israel is weighing a strike on Iran’s nuclear facilities. Adding to the unease, US President Donald Trump is facing internal resistance in Congress over his proposed fiscal package. Both global and domestic issues are fueling a rally in gold, which recently broke out of a tight trading range. Gold price saw strong inflows after CNN reported late Tuesday that Israel may be preparing to strike Iranian nuclear sites. While former President Joe Biden once succeeded in easing Prime Minister Benjamin Netanyahu’s stance, the situation under Trump appears more volatile. The report cited intercepted communications, Israeli military movements, and internal government messaging, but added that Israel hasn’t made a final decision yet.

Markets are on high alert as uncertainty looms. If Israel confirms such an attack, investors may further move capital into gold as a protective hedge, pushing prices closer to the $3,350 mark.

President Trump is facing challenges not just overseas but at home. His administration’s fiscal bill, including proposed tax changes, is struggling to gain traction in Congress. Frustration grew during meetings with lawmakers, especially over disagreements surrounding the State and Local Tax (SALT) deduction cap, where some Republicans demanded a much higher cap.

This gridlock in Washington raises doubts about the US economy’s stability in the eyes of investors. When political trust weakens, the dollar tends to drop, and gold — seen as a stable asset — becomes more attractive.

From a technical standpoint, the momentum behind gold is strong. Traders are watching closely as XAU/USD eyes the $3,324 resistance level, which matches the high from May 12. If that level breaks, the next resistance is at $3,354, followed by a key peak at $3,431, last seen between April 21 and May 7. If geopolitical risks escalate — especially with Middle East conflict — analysts expect gold prices to test or even break above these resistance zones. Despite the strong bullish outlook, support levels are also in play in case of a pullback. The daily pivot point sits at $3,263, with additional layers of support at $3,245 and $3,231, marking important zones for buyers to step back in if prices dip.

This layered support means any price correction may be limited, especially as long as tensions and fiscal uncertainty persist.

Yes — the situation is broader than just Iran or US politics. The Vatican is stepping in with an offer to host Ukraine-Russia peace talks, following a call between President Trump and Russian President Vladimir Putin. Global instability continues to make gold a top safe-haven choice.

Meanwhile, in Europe, the Financial Times reports that US lawmakers are urging Northern Ireland to approve a gold mining project owned by an American company. The mine could be worth billions, and delays might push investors away — again showing how gold isn’t just a metal but a symbol of economic confidence.

With gold price now nearing $3,310, driven by growing fears of conflict in the Middle East, domestic political uncertainty in the US, and ongoing global instability, it's clear the metal remains a top pick for risk-averse investors.

Markets will now watch for any confirmation from Israeli or US leaders about military plans. At the same time, attention remains on Trump’s fiscal package and whether it can make it through Congress.

As long as these storylines remain unresolved, the gold price outlook stays bullish.

Gold price rises when geopolitical risks increase, as investors seek safer assets.

Uncertainty over Trump’s bill boosts gold, as political gridlock weakens trust in the dollar.