Gold Price Forecast: Bulls remain capped below $4,045 resistance

• Gold attempts to bounce up from lows below $3,900 remains capped at $4,045 area
• US Dollar's strength following the Fed's hawkish stance is weighing on precious metals' recovery.
• Failure to breach $4,045 resistance area leaves the $3,900 support exposed.

Gold (XAU/USD) has bounced from last week's lows below the $3,900 level, yet bulls remain unable to confirm above a previous support area around $4,045 (October 24 low), which leaves price action fluctuating without a clear bias around the $4,000 level on Monday,, with investors awaiting US manufacturing data due later on the day,.

Looking from a wider perspective, the precious metal remains on the back foot, as the US Dollar retraces previous losses, buoyed by the Fed's monetary policy stance. The US central bank cut rates, as expected last week, but Chairman Powell warned about excessive confidence in further monetary easing in December, which sent US treasury yields rallying and the US Dollar higher with them.

Technical Analysis: Support at $3,900 area remains in play

The technical perspective shows a mixed picture, with the 4-hour Relative Strength Index (RSI) hovering around the 50 level, highlighting a stalled market. Bulls are failing to breach the resistance area between $4,030 and $4,045 (October 29, 31 highs), which leaves the support area around $3,900 exposed.

A confirmation above the $4,045 level is needed to ease bearish pressure and put some distance from last week's lows. That would shift the focus towards the $4,150 area (October 23 highs). Further up, the next target would be a previous support area ahead of $4,220, which contained bears on October 17, 19, and 20.

To the downside, a further decline below the October 28 low, near $3,890, would bring the October 2 low near $3,820 into focus. That level is a few pips above the measured target of an A-B=C-D retracement from $4,370 highs, which lies at $3,795.