Gold Price Forecast: XAU/USD is struggling to confirm above $4,000

• Gold recovery from lows near $3,900 has stalled above $4,000.
• Higher US yields and lower bets of Fed cuts are supporting the US dollar and weighing on precious metals
• Failure to confirm above the $4,030-4,040 resistance area leaves $3,900 support exposed.

Gold bounced higher on Thursday, fuelled by risk aversion following Wall Street's reversal amid fresh concerns about valuations in the AI sector. The pair, however, remains unable to extend gains past the top of the weekly range, at $4030, as the higher US Treasury yields and the firm US Dollar are acting as headwinds for the precious metal.

US yields and the US Dollar bounced strongly on Wednesday after the Federal Reserve Chairman, Jerome Powell confirmed a widely expected rate cut but played down hopes of further easing this year, Bets of a decembner rate cut have declined to 64% from 91% ahead of the meeting, according to data fron the CME Fed Watch tool, while the yield on benchmark US 10-year bondd rose beyond 30 basis points sinver last Wednesday returning to levels beyond 4.10%

Technical Analysis: Support at $3,900 area remains at a short distance

Gold is showing a mild recovery attempt from Thursday's lows at the $3,920 area, yet, so far, unable to find any significant acceptance above the top of the weekly range, in the $4,030-4,040 area (October 29 and 30 highs), which leaves the support area, around $3,900 (October 28, 30 lows) exposed.

Technical indicators are mixed. The 4-hour Relative Strength Index (RSI) is wavering around the 50 level, showing a lack of clear bias, while the t Moving Average Convergence Divergence (MACD) shows a frail upside momentum.

A successful break above the $4,040 level would ease bearish pressure and shift the focus towards the October 23 highs, at $4.150, ahead of a previous support area near $4,220 (October 20 lows): To the downside, further depreciation beloew the October 28 low, near $3,890 woild bring the October 2 low, near $3,820, into focus. The measured target of an A-B=C-D retracement from all-time highs near $4,380 would be at $3,795.

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