Technical buying combined with ongoing Middle East conflict pushes gold prices to near two-week highs

1. During Wednesday's Asian morning session, international gold prices continued their rise, reaching the highest level since July 10. Technical buying momentum has pushed gold prices higher. Investors are awaiting next week's Federal Reserve meeting for clues on the outlook for interest rates, while closely monitoring the potential impact of escalating Middle East conflict on inflation expectations.2. Spot gold once rose 1.1% to $4,123.35 per ounce, marking a new high since July 10. Analysts pointed out that, after successfully forming a bottom near $4,000, gold prices are gradually gaining upward momentum. From a technical perspective, if the resistance range of $4,120–$4,140 can be effectively broken, gold prices may further advance towards the $4,200 mark.3. In terms of geopolitics, threats to Red Sea shipping from Yemeni Houthi militants caused two oil tankers carrying Saudi crude to change course, with ongoing Middle East conflict continuing to disrupt vital global energy transport routes. The intensifying situation has reinforced gold's appeal as a safe-haven asset. However, the Iranian Minister of Interior visited mediating party Pakistan, indicating diplomatic efforts are still underway.4. Regarding Federal Reserve policy expectations, economists anticipate the Federal Reserve will maintain the key interest rate unchanged for the remainder of 2026 to cope with persistent inflationary pressures. The market generally expects no action at next week's meeting, but expectations for a rate hike in September remain elevated.5. Oil prices rose over 1% during the day, hitting a fresh high of more than five weeks and continuing to exert pressure on the inflation outlook.