Despite the challenges gold is facing in a high interest rate environment The precious metal will remain stuck in its current range until the market knows for sure when the Fed will cut interest rates. Gold's short-term direction will continue to depend on upcoming economic data and their impact on the USD, yields and, not least, interest rate cut expectations. A key pillar of gold's relative strength is ongoing geopolitical unrest. Over the past two years, gold has seen significant safe-haven appeal as investors sought to protect their assets due to concerns related to the two conflicts. However, in a recent report, experts said they see the growing climate crisis also positively impacting precious metals as it adds to geopolitical instability. After failing to overcome the resistance at $2,040, XAU/USD has fallen back and is currently trading within a Triangle pattern, around $2,027. In addition, the RSI indicator on the daily chart is fluctuating around the 40.0 - 60.0 range, showing hesitation among investors, so gold prices may move sideways in the near future.