Gold Price Forecast | XAU/USD Eyes Breakout Above $4381.44 as Bulls Push Higher

What to Know

• Gold price rises toward $4343 as bulls target a breakout above the record high at $4381.44.
• Weak US Dollar and easing yields support fresh buying, extending a five-session rally.
• Market pricing of two Fed rate cuts next year reinforces bullish momentum for non-yielding assets.
• Key support is at $4192, while resistance remains at the all-time high of $4381.44.

Gold Edges Higher as Momentum Builds

Spot gold (XAU/USD) climbed above $4343, marking a 1.02% gain, as bullish momentum continues to dominate the market. Despite staying within Friday’s range early this week, buyers are pushing steadily toward the all-time high of $4381.44. A five-day winning streak highlights strong market conviction, suggesting the next focus is a breakout rather than a reversal.

Dollar Weakness and Softer Yields Boost Gold

Gold’s rally is underpinned by broader market dynamics. The US Dollar hovers near a two-month low, while US Treasury yields ease — the 10-year yield around 4.16% and the 2-year near 3.51%. This combination favors non-yielding assets like gold, giving bulls the room to extend gains. Silver is also showing resilience, though it hasn’t yet retested previous highs.

Fed Rate Cuts Keep Buyers Engaged

Despite a split vote in the latest Fed meeting, traders continue to price in two rate cuts for next year. These expectations support gold buying, particularly as investors anticipate softer economic data from the delayed NFP and CPI releases. Central bank buying and strong investor flows further reinforce the bullish narrative.

Safe-Haven Demand Adds Support

Geopolitical concerns, such as Russia’s pushback against EU frozen asset plans, provide an additional safety net for gold. While the market doesn’t require dramatic risk events to move higher, the presence of uncertainty maintains steady demand.

Key Levels: Breakout vs. Support

• Resistance: $4381.44 — a clean breakout above this level could leave gold with open upside.
• Support: $4192 — dip-buyers may enter near this Fibonacci level if a pullback occurs.

The bias remains bullish, with momentum, macro conditions, and geopolitical uncertainty all aligning for a potential upside break. A reversal remains a secondary concern until the market attempts to clear $4381.44.

Q&A: Gold Forecast Insights

Will gold break the all-time high soon?

Momentum and supportive fundamentals suggest a breakout above $4381.44 is possible, especially if buyers remain active and the USD stays weak.

What could trigger a pullback?

Stronger USD moves or higher-than-expected yields could push gold toward the $4192 support level.

How do Fed rate cuts affect gold?

Rate cuts make non-yielding assets more attractive, reinforcing gold’s bullish case and encouraging buying.

For more daily precious metals forecasts and expert technical analysis on gold and silver, including XAU/USD, visit our Forecasts section to stay ahead of market trends.