XAUUSD Weekly Forecast: Global Tensions and Gold’s Potential Breakout

Escalating tensions in the Middle East, with the US joining the Iran-Israel conflict, have created a mixed reaction in financial markets. Gold remains range-bound despite the geopolitical uncertainty, but analysts maintain a bullish bias with expectations of a retracement to key levels before a potential push to new highs.

This week's US economic data—including PMIs, Powell's testimony, and GDP figures—could be the catalyst for gold's next move. Weak economic indicators may fuel rate cut expectations, weakening the dollar and propelling XAUUSD upward. Conversely, hawkish Fed commentary could temporarily pressure prices.

Traders are watching $2,400/oz as a critical resistance level. A breakout above this zone on sustained safe-haven demand or dollar weakness could trigger a march toward all-time highs. The metal's inverse correlation with real yields remains the dominant macro driver.