Summary:Gold edges higher after hitting a two-week low, with bargain-hunting emergingIran tensions persist as maritime incidents and US blockade continueCeasefire extension tempers immediate escalation and oil shock risksDollar direction remains key driver, competing with safe-haven demandPrices consolidate below resistance, with downside levels in focusGold prices edged (barely) higher on Wednesday, recovering modestly after falling to a two-week low in the prior session, as investors reassessed geopolitical risks and broader macro drivers.The rebound was largely attributed to bargain-hunting following the recent decline, rather than a decisive shift in sentiment. Markets remain focused on developments surrounding the Iran conflict, which continues to shape both safe-haven demand and inflation expectations through its impact on energy markets.Tensions remain elevated. Iran has reportedly seized cargo vessels in the Strait of Hormuz, while the United States has maintained its maritime blockade on Iranian ports. Despite an extension of the ceasefire, there has been little progress toward renewed negotiations, leaving uncertainty high and the risk backdrop unresolved.At the same time, the extension of the ceasefire has reduced the immediate risk of a sharp escalation in hostilities. This has eased concerns about a near-term surge in oil prices and the associated inflation shock. In parallel, the softer inflation outlook has weighed somewhat on the US dollar, creating a more balanced environment for precious metals.As a result, gold is currently being influenced by competing forces. On one side, geopolitical uncertainty and residual safe-haven demand provide underlying support. On the other, movements in the dollar and shifting expectations around inflation and interest rates continue to cap upside momentum.Analysts suggest that, in the absence of a clear catalyst, such as a decisive shift in the conflict or a stronger directional move in the dollar, gold and silver are likely to remain rangebound in the near term. This reflects a market still searching for a dominant narrative.From a technical perspective, gold is consolidating below key resistance levels, with recent price action resembling earlier breakdown patterns observed this year. This structure points to a market that is stabilising but not yet showing signs of a sustained recovery.Downside levels are now being closely monitored, with a move lower potentially triggering further selling pressure. Silver is also showing a similar consolidation pattern, with technical signals suggesting the potential for a more pronounced directional move once the current range resolves.Overall, the near-term outlook for precious metals remains one of consolidation, with geopolitics and currency dynamics continuing to dictate direction. This article was written by Eamonn Sheridan at investinglive.com.