• Spot gold rises nearly 1% to $4,498.63/oz, extending its recent rally.
  • Investors flock to gold amid persistent inflation concerns and a softer U.S. dollar.
  • Analysts eye next resistance at $4,600-$4,800 as macro uncertainties persist.

Gold prices continued their upward trajectory on Wednesday, with spot gold climbing nearly 1% to $4,498.63 per ounce, approaching the psychologically significant $4,500 level. The move reflects sustained safe-haven buying as investors weigh inflation dynamics and expectations of monetary policy easing.

"Gold is benefiting from a combination of factors: a weaker dollar, falling real yields, and lingering geopolitical risks," said a senior metals strategist at a European bank. "The macro backdrop remains supportive, and we see potential for further gains in the near term."

The rally builds on momentum from earlier in the week, when gold broke above $4,400 after softer-than-expected U.S. economic data fueled bets that the Federal Reserve may cut rates sooner than previously anticipated. Market pricing now implies a 60% chance of a rate cut by September, according to CME FedWatch data.

Traders are also monitoring currency markets, where the U.S. dollar index slipped 0.3% on Wednesday, making dollar-denominated gold cheaper for foreign buyers. "A softer dollar is a tailwind for gold, especially with central banks in emerging markets continuing to diversify reserves," noted a portfolio manager at a global asset manager.

From a technical perspective, gold’s next resistance lies in the $4,600-$4,800 range, a band that has capped rallies in recent cycles. "If we clear $4,500, the path to $4,700 opens up quickly," said a technical analyst at a London-based brokerage. "But we could see some profit-taking near current levels given the rapid move."

Demand from central banks remains a key undercurrent, with official sector purchases on track to exceed 1,000 tonnes for a third consecutive year, according to World Gold Council data. Meanwhile, inflows into gold-backed exchange-traded funds have turned positive in recent weeks, adding to bullish sentiment.

Correction: An earlier version of this article misstated the percentage gain. Gold was up nearly 1%, not 1.5%.