Gold (XAU/USD) has edged higher beyond $4,500, with technical indicators turning bullish as the precious metal recovers from last week's support at $4,100 [1]. The 4-hour chart shows XAU/USD trading at $4,532, rebounding from recent lows and signaling a mildly bullish near-term bias. The Relative Strength Index (RSI) has climbed to 53.58, moving above the 50 midline, which suggests improving upside momentum. Additionally, the Moving Average Convergence Divergence (MACD) line stands above the Signal line in positive territory, reinforcing moderate bullish momentum [1].
Price action indicates that gold is in the C-D leg of a Gartley pattern, with immediate resistance at the 38.2% Fibonacci retracement of the March sell-off, around $4,610. A confirmation above this level could expose the March 20 high at $4,735, while the most plausible target for a bullish correction is the $5,040 area, which previously acted as support-turned-resistance on March 16 and 17 [1]. On the downside, initial support is at the March 26 low of $4,355, ahead of the March 23 low at $4,100 [1].
The US Dollar Index (DXY) remains firm, supported by higher US Treasury yields and rising hopes that the US Federal Reserve may be forced to hike interest rates at least once this year. However, DXY is nearing a key resistance area at 100.50; if bulls fail at that level, a deeper correction in gold could occur [1].
No explicit analyst opinions or forward-looking statements beyond technical targets are provided, but the technical analysis suggests that gold's recovery could extend toward the $5,000 area if bullish momentum persists [1].
CONCLUSION
Gold is showing signs of recovery, with technical indicators pointing to a potential extension toward the $5,000 mark if resistance levels are breached. The market sentiment is moderately bullish, though the US Dollar Index's performance and Federal Reserve policy remain key factors to watch. Investors should monitor resistance and support levels closely for further market direction.