Gold Price Forecast: XAU/USD resumes its uptrend with $3,440 on focus

• Risk aversion has boosted Gold to fresh monthly highs.
• A rush for safety after Israel's attack on Iran has triggered a rush for safety on Friday.
• XAU/USD bulls are focusing on $3440 and the $3495 all-time high.
  

Gold (XAU/USD) appreciates for the third consecutive day on Friday, and is on track for a weekly rally beyond 3%. Israel's attack on Iran has crushed an already fragile market sentiment on Friday, triggering a rush for safety that has boosted Gold and all the traditional safe assets.

Israel attacked Iran with unprecedented strength earlier on Friday, pounding nuclear sites and killing high-ranking Revolutionary Guard Officials. Iran retaliated with a drone attack and leaving the nuclear negotiations with the US. Fears of a full-blown war in the region have fuelled an intense risk-off mood.

Technical analysis: XAU/USD bulls aim for $3,440 ahead of the $3,495 record high

Technical indicators are pointing higher again. RSI studies in the 4-hour chart are high but still below overbought territory. The fundamental background is supportive, despite generalised USD strength, and bearish attempts remain limited so far.

The precious metal is trading at the top of a wedge pattern with trendline resistance at $3,425 is holding bears ahead of the May 6 high, at $3,440. Bulls need to clear these levels before shifting their focus to the $3,495 all-time high hit in late April.

On the downside, bears are being held above the $3,400 previous resistance (Jun 5 high). A pullback below here would bring the June 12 low and the bottom of the wedge pattern, both around $3,345, into focus.

XAU/USD 4-Hour Chart