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Gold Price Forecast: XAU/USD rallies further with the $5,000 level on focus

  • XAU/USD hits fresh highs at $4,600, amid generalised US Dollar weakness.
  • Hopes about a quick end to Iran's war have boosted risk appetite.
  • Gold extends its recovery with bulls looking at the $5.000 area.

Gold (XAU/USD) appreciates for the fourth consecutive day on Thursday. The US Dollar (USD) tumbles as hopes of a quick end to the Iran war have improved risk appetite and triggered significant pullbacks in US Treasury yields. The precious metal has rallied to nearly two-week highs past $4,600, bringing the $5,000 target into the bull’s focus.

US President Donald Trump boosted sentiment on Tuesday, affirming that the US Army could withdraw from Iran within the next two or three weeks, whether or not there is a deal. Trump also said that Tehran will be unable to build a nuclear weapon “for years” and that the Strait of Hormuz will reopen “automatically” after the US exit. 

The US president is expected to address the nation on Thursday at 01:00 GMT to provide an “important update” on Iran.

Chart Analysis XAU/USD

Technical Analysis

The 4-hour chart shows XAU/USD trading at $4,747 with technical indicators highlighting a near-term bullish bias. The Relative Strength Index (RSI) is approaching, but not yet at overbought territory, and the Moving Average Convergence Divergence (MACD) histogram expands positively, endorsing the positive momentum.

The precious metal has breached resistance at the 38.2% Fibonacci retracement of the March sell-off, at the $4,600 area. The immediate trend suggests that the pair remains in the C-D leg of a Gartley pattern, targeting the $5,040 area, a previous support-turned-resistance on March 16 and 17.

On the downside, bears would need to push the pair below the mentioned $4,600 arera to ease bullish pressure and bring the March 26 low, at $4,355, and the year-to-date low, at $4,100, back to the table.

(The technical analysis of this story was written with the help of an AI tool.)

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.45%-0.67%-0.19%-0.16%-0.82%-0.52%-0.90%
EUR0.45%-0.23%0.24%0.29%-0.36%-0.06%-0.46%
GBP0.67%0.23%0.49%0.52%-0.13%0.18%-0.21%
JPY0.19%-0.24%-0.49%0.04%-0.59%-0.32%-0.68%
CAD0.16%-0.29%-0.52%-0.04%-0.64%-0.35%-0.73%
AUD0.82%0.36%0.13%0.59%0.64%0.31%-0.08%
NZD0.52%0.06%-0.18%0.32%0.35%-0.31%-0.39%
CHF0.90%0.46%0.21%0.68%0.73%0.08%0.39%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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