(MENAFN- Mid-East Info) By Daniela Sabin Hathorn, senior market analyst at Capital

Gold is at it again. The precious metal continues to attract investor attention as it powers through key levels, this time the $4,000 mark. The momentum is well supported, driven primarily by expectations of further easing around the globe. The leadership change in Japan, which has seen deficit-dove Sanae Takaichi take the reins of the ruling Liberal Democratic Party, has served as a new boost this week. A softer dollar, persistent central bank buying and elevated geopolitical risk continue to underpin the move. With fiscal policy remaining expansionary in many economies despite above-target inflation, dips are still finding willing buyers-though the technical picture argues for respect of rising volatility after a historic breakout. Beyond near-term momentum, the medium-term case for bullion still leans positive: tolerance for above-target inflation, swelling public deficits, ongoing de-risking in FX reserves, and a dense geopolitical calendar suggest pullbacks may remain shallow unless policy surprises jolt real yields sharply higher.

Gold (XAU/USD) daily chart -p decoding="async" class="CToWUd" title="A graph of stock marketAI-generated content may be incorrect." src="#" alt="A graph of stock marketAI-generated content may be incorrect." width="624" data-bit="iit" />

Past performance is not a reliable indicator of future results.

MENAFN08102025005446012082ID1110167881