• Gold rises as traders “buy the fact” of the ceasefire deal brokered between Israel and Hezbollah on Tuesday. 
• Technical support from a major trendline is also adding upside pressure as it represents a key chart level for Gold. 
• Wednesday sees an economic data dump from the US; changes in interest rate expectations could impact Gold price.  

Gold (XAU/USD) recovers into the $2,650s on Wednesday as traders “buy the fact” of the ceasefire deal brokered between Israel and Hezbollah after “the rumor” led to heavy selling on Monday. The two warring parties agreed on a 60-day ceasefire deal which has, so far, held, although sceptics say it will remain unsustainable without an end to hostilities in Gaza, according to Bloomberg News. 

Gold may also be rising from safe-haven flows due to other geopolitical hotspots. Reports from Ukraine suggest the frontline is becoming “as unstable as at the start of the war,” according to the UK’s Secretary of State for Defence, John Healy.   

A weaker US Dollar (USD) on Wednesday, meanwhile, may be providing Gold with a backwind, given the two assets’ negative correlation to each other.

In a busy day for markets, the precious metal could face volatility with the release of key US metrics covering growth, inflation, and the labor market, particularly if they revise the outlook for US interest rates, a key driver for Gold price.