• Gold price rises to near $2,420 as upside risks to Middle East tensions have improved its safe-haven appeal.
• The major trigger for the Gold price will be the Fed’s guidance on interest rates.
• Investors see the Fed leaving interest rates unchanged with a dovish guidance.

Gold price (XAU/USD) exhibits a strong performance in Wednesday’s European session, with investors focusing on the Federal Reserve’s (Fed) monetary policy outcome later the day. The precious metal climbs to near $2,420 as its safe-haven appeal improves amid fears that Middle East tensions would widen further. Historically, investors find investment in precious metals as safe bet amid geopolitical tensions.

Fears of an all-out war between Israel and Iran deepened after reports showed that Hamas leader Ismail Haniyeh was killed in an Israeli air strike on Tehran. This has prompted fears of a retaliation move by Iran, which would diminish hopes of a ceasefire significantly.