Gold Price Forecast: XAU/USD rallies to $4,200 as US yields retreat - Mitrade

AI desk brief

Gold (XAU/USD) rallied to just above $4,200 before easing to around $4,187 as softer US yields and a weaker dollar supported the move from Wednesday’s two-month low near $4,066. The pair is holding a bullish near-term bias above reclaimed August downtrend resistance, but the $4,190-$4,240 area is acting as a key resistance band; a break there would open $4,300, while support sits near $4,170 and then $4,070/$4,000.

Macro drivers are mixed: a solid 30-year US Treasury auction helped flatten the curve and pressure the dollar, but Brent above $100 is keeping inflation concerns alive. St. Louis Fed’s Alberto Musalem said “more monetary policy will be needed” to get inflation back to target, which should limit downside in the USD and cap gold’s upside unless yields keep retreating.