Gold price advanced beyond $4,800: Can bulls push to $4,900 next?

The gold price has stabilized over the past few days following a steep decline. The precious metal continued its recovery and saw a sharp increase early Wednesday as investors reacted to a weaker US dollar and a temporary ceasefire between the US and Iran. This optimism has lowered expectations for more aggressive central bank policies, boosted demand for non-yielding gold, and exerted downward pressure on crude oil prices, while also alleviating concerns about inflation.

However, gold prices slightly retreated after reaching a fresh three-week high of $4,856, as traders booked profits at elevated levels. The metal continues to consolidate gains below the key psychological level of $4,800, maintaining its bullish structure following the multi-week high.

Gold Fundamental Outlook

Looking ahead, volatility is expected to remain elevated this week due to a series of key economic data releases and ongoing geopolitical tensions. Gold investors and traders should closely monitor major US economic reports, geopolitical developments, movements in the US dollar, and treasury yield trends. The most significant data for XAUUSD for the rest of the week will be the US inflation figures.

Additionally, investors are looking forward to the Fed minutes later today for guidance. The minutes from the March Federal Reserve meeting could significantly impact short-term price direction by offering detailed insights into the Fed’s monetary policy stance as we approach the April meeting.

XAUUSD Technical Forecast

Looking at gold from a very short-term perspective, it is evident that the metal held steady above the $4,800 resistance. As of this writing, the gold price trades below $4,780. The technical picture on the daily chart continues to support a fresh advance with a firm bullish tone after the latest bounce. The current RSI below 60 suggests we’re still in somewhat bullish territory without breaking into overheat mode. Therefore, in the short term, if the metal regains the momentum, the bulls are eyeing the $4,880/4,900 mark.

On the downside, during the same time period, the return of the gold price towards the support level of $4,700 will be important to control bearish forces on the trend again and dissipate the current upward hopes.

Warning! This material is not intended as investment advice. Past performance data does not guarantee future returns. Investing in foreign currencies may affect your returns due to their fluctuations. Any transaction in securities may result in both profits and losses. The assumptions and expectations set forth in this material are only estimates that may not be accurate and may change depending on current economic conditions. These statements do not guarantee future returns.