Gold hits fresh weekly top, eyes $4,200 as USD weakens further amid softer bond yields
Gold (XAU/USD) gains positive traction for the second straight day on Friday, extending this week's recovery from a two-month low.
Gold has hit a new weekly high, trading near $4,200, as the US Dollar weakens. This comes after a two-month low and is supported by softer bond yields. However, geopolitical risks, such as tensions between Iran and the US, may limit the strength of the dollar's decline and cap gold's recovery. US Vice President JD Vance stated that Iran must reduce its nuclear enrichment to meet US demands, but Iran's Atomic Energy Chief rejected this demand.
Traders are looking to economic data releases, such as the University of Michigan US Consumer Sentiment and Inflation Expectations Index, for further support. Analysts at UOB Group expect two more interest rate hikes by the end of 2026, but are cautious about the possibility of further policy tightening due to persistent inflation and other factors.
The XAU/USD pair is currently trading in a range, with potential support at $4,104 and resistance at $4,200, $4,227, $4,231, and $4,320.
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