Gold (XAU/USD) rallied sharply this week, breaching the psychologically important $2,400 level for the first time since April, as softer-than-expected US inflation data strengthened the case for Federal Reserve rate cuts.
The yellow metal gained over 2.1% on the week, supported by a weaker US dollar (DXY fell 0.8%) and declining US Treasury yields. The 10-year US yield dropped to 4.21%, its lowest level in two months.
**Key drivers:**
- US CPI came in below forecasts, reducing pressure on the Fed to maintain high rates
- Middle East geopolitical tensions supported safe-haven demand
- Central bank gold purchases remain elevated globally
For UAE and GCC traders, gold remains one of the most actively traded instruments, with XAU/USD spreads at leading regulated brokers currently ranging from 0.15 to 0.35 pips.
**Technical outlook:** The next resistance zone is $2,450, with support established at $2,360. A sustained break above $2,420 could open the path toward $2,500 in the medium term.
*Risk Warning: Gold trading involves significant risk. Past performance is not indicative of future results.*