Gold Price Forecast: XAU/USD Regains Bullish Momentum, Targets $3,440

Gold Extends Rally on Geopolitical Fears

Gold (XAU/USD) continues its bullish run for a third straight day on Friday, following intensifying geopolitical tensions in the Middle East. The yellow metal is now trading near record monthly highs, with strong risk-off sentiment pushing investors into safe-haven assets.

Escalating Conflict Drives Flight to Safety

After Israel launched an unprecedented strike on Iranian nuclear sites, market sentiment turned sharply negative. The attack reportedly resulted in the deaths of senior Iranian Revolutionary Guard members. In response, Iran launched a retaliatory drone attack and walked away from nuclear negotiations with the US, further deepening global market fears.

These developments have caused a dramatic surge in safe-haven demand, bolstering Gold alongside assets like the Swiss Franc and US Treasuries.

"Gold thrives in crisis. With fears of a full-blown regional war, XAU/USD has re-entered its bull cycle."

Price Outlook: Bulls Eye $3,440, Then $3,495

Technically, XAU/USD is showing strong momentum:

• Immediate target: $3,440
• All-time high: $3,495
• Support level: Around $3,350

The current rally also benefits from expectations of Fed rate cuts in 2025, further reducing opportunity cost for holding non-yielding assets like Gold.

What to Watch

• Continued developments in the Israel-Iran conflict
• Market positioning ahead of the FOMC meeting next week
• Broader risk sentiment across commodity and equity markets

Final Thoughts

With global uncertainty rising and risk appetite collapsing, Gold remains one of the top safe-haven plays. As long as geopolitical tensions persist and inflation expectations remain tame, the bullish case for XAU/USD is intact.

Related: Silver, Platinum, and Palladium Forecasts Revised Higher