Gold Price Forecast: XAU/USD bounces up, looks to the $4,060 record high

• Gold maintains its bid tone on Thursday, with downside attempts limited at $4,000
• Political and fiscal uncertainty in France and Japan keep underpinning demand for precious metals.
• The risk-on reaction after the peace deal in Gaza has been short-lived as investors ponder the fragility of the agreement.

Gold's reversal has been contained above the $4,000 psychological level, and the precious metal appreciates again on Thursday, trading at $4035 at the moment of writing, with the $4,060 record high at a short distance.

Precious metals remain bid on Thursday. The reaction to the peace deal between Israel and Hamas in Gaza has been limited so far, with investors pondering the fragility of the agreement. On the other hand, market expectations of further Fed easing and the uncertain political situation in Japan and France keep undermining demand for traditional safe havens.

Technical Analysis: Consolidating gains above $4,000

From a technical perspective, Gold maintains its bullish trend intact, with bearish attempts held above the $4,000 level. The 4-hour RSI is close but not at overbought levels yet, which suggests that a new test of the $4,060 record high is on the cards.

Further up, the 161.8% Fibonacci extension of the October 2 - 7 rally is at $4,086, and the near-term trendline resistance, in the vicinity of the $4,100 area now, are plausible targets.

Immediate support is at the mentioned $4,000 level (October 8 lows). Below here, the next target is the October 7 low, near $3,940, ahead of the previous resistance, at the $3,895 area (October 1,2, and 3 highs).