Gold Price Forecast: XAU/USD rallies above $4,200 on US Dollar weakness 

• Gold appreciates for the fifth consecutive day, hitting three-week highs above $4,220.
• Risk appetite amid the US government reopening is weighing heavily on the US Dollar.
• A confirmation above $4,220 would expose the record highs around $4,380.

Gold (XAU/USD) extends gains for the fifth consecutive day on Thursday as the US Dollar dives on risk appetite, following the end of the US government's closure. The precious metal appreciated to three-week highs above 4,200 and is now testing resistance at a previous support area around $4.220.of

Earlier on Thursday, US President Donald Trump signed the bill that ends the longest US government shutdown in history, which was celebrated by the market. The risk rally has sent the safe-haven US Dollar tumbling against most peers, which provided an additional impulse to Gols.

Technical Analysis: Above $4,220, the target is the $4,380 record high

The technical picture shows an improving bullish momentum. The 4-hour Relative Strength Index (RSI) is trending higher above the key 50 level, and the Moving Average Convergence Divergence (MACD) is crossing about the signal line, hinting at further appreciation.

The break of the $4,150 resistance area on Wednesday confirmed that the correction from the October highs has completed, and bulls are now attempting to breach the mentioned $4,220 level, which held downside attempts on October 20. Above here, the next target is the all-time highs around $4,380 (the highs of October 20 and 21).

On the other hand, a bearish reaction from current levels is likely to find support at the $4,150 area (October 22, 23, 24, and November 11 highs). Further down, the $4,100 area (November 11,12 lows) and a previous resistance area at $4,050 (October 31 highs) are likely to challenge bears.