Gold Price Forecast: XAU/USD holds near record highs with $3,940 holding bears

• Gold stands comfortably near all-time highs, with downside attempts contained above $3,940.
• Political and fiscal concerns in France and Japan are weighing on risk appetite this week.
• XAU/USD maintains its bullish bias intact with the $4,000 level at a short distance.

Gold remains steady right below all-time highs, at $3,973, supported by a cautious market mood on Tuesday. The precious metal is trading right below $3,960 during the European morning trading, with downside attempts held above $3,940

Growing political and fiscal concerns after Takaishis' victory in Japan and France's Prime Minister Lecornu's resignation have spooked investors away from the Euro and the Yen, while Gold strengthened on the back of its safe-haven status.

Technical Analysis: Next resistances are $3,980 and $4,000

The technical picture remains positive, with price action contained within an ascending channel from late September lows at $3,720. The 4-hour RSI has pulled back from oversold levels, and the fundamental background is supportive, which suggests that there is room for further appreciation.

To the upside, immediate resistance is at $3,980, where Monday's all-time highs meet the 127.2% Fibonacci extension of the September 24-30 rally. Further up, bulls might be attracted by the $4,000 psychological level ahead of the 161.8% extension of the mentioned cycle, at $4,035.

A bearish reaction from current levels would face support at the intraday low of $3,940. Further down, the targets are the previous resistance area around $3,790 (September 23 and 26 highs), and the September 28 low, at $3,755.