Gold Price Forecast: XAU/USD bulls target $4,380 buoyed by lower US yields

Gold (XAU/USD) prices have been on the rise, climbing nearly $200 this week due to lower US Treasury yields. Traders are betting on a drop in Federal Reserve rate hikes, and currently, the precious metal is trading at $4,270. Analysts at MUFG predict that political interference is increasingly being factored into the Dollar. They mention that President Trump has spoken to Fed Chair Jerome Powell "repeatedly" since he took over at the Fed, which reinforces the impression of increased political influence undermining Fed independence.

The XAU/USD pair has broken above a descending triangle, indicating a potential bullish reversal. Momentum indicators suggest that the precious metal is in overstretched conditions, but dips are expected to find buyers. The Relative Strength Index (14) is overbought at 77, and the Moving Average Convergence Divergence (MACD) remains positive, signaling a possible corrective pause.

The immediate resistance is at $4,300, followed by the June 17 high of $4,380. Further up, early June highs above $4,500 will be crucial. Bearish reversals are likely to be tested at previous highs around $4,200, ahead of broken trendline resistance at $4,130 and Monday's low near $4,020.