XAU (Tether Gold) is back in focus after gold posted one of its strongest weekly rallies this year. Spot gold climbed above $4,270 per ounce, extending a four-day rally as expectations of another U.S. Federal Reserve rate hike eased. Lower Treasury yields, a weaker U.S. dollar, and renewed safe-haven demand have all supported the move.

Since each XAU token is backed by one troy ounce of physical gold, the token has moved in tandem with the precious metal. XAU is currently trading around $4,256, up 2.84% over the past 24 hours, with traders now watching whether gold can sustain its momentum above the recent breakout zone.

Ready to act on these levels?

▼ Support

$4,180

₹3.49L

▲ Resistance

$4,300

₹3.59L

If gold continues to attract safe-haven flows and XAU holds above $4,180, buyers could push the token toward the $4,300-$4,350 zone. A sustained move above resistance would signal that bullish momentum remains intact.

If optimism around interest rates fades or the U.S. dollar strengthens again, gold could see profit booking. In that case, a break below $4,180 may expose XAU to a move toward $4,050, where buyers could look to re-enter.

Cooling expectations for higher U.S. interest rates

The biggest catalyst behind this week’s rally is the market’s changing view on U.S. interest rates. Recent economic data has reduced expectations of further Federal Reserve tightening, making non-yielding assets like gold more attractive. At the same time, easing inflation concerns and renewed central bank buying have strengthened demand for bullion, directly benefiting XAU. For futures traders, this macro theme is likely to remain the biggest driver of price action over the coming sessions.

Trade XAU based on these levels today.