Gold Price Forecast: XAU/USD Holds Gains Above $4,600, Bullish Bias Dominates

During Friday's European session, spot gold extended the previous day's rebound, currently trading around $4,610.68, maintaining modest intraday gains. Earlier at the time of writing, gold was quoted near the $4,610 level, still operating within the recent ascending channel pattern, indicating that the market's bullish bias has not yet faded.

**Weak Dollar and Falling Treasury Yields Provide Support**

The current upward momentum in gold is mainly driven by the combination of a weak dollar and declining U.S. Treasury yields. Recent adjustments in bond market expectations regarding the Federal Reserve's policy path have pushed yields lower and diminished the dollar's appeal, prompting some institutional funds to flow back into non-yielding gold. However, the macro environment is not entirely bullish—the Fed remains cautious on inflation, and the current policy stance has not provided clear confirmation of easing. This means the extent of gold's rebound still depends on subsequent U.S. economic data and the interplay of dollar and Treasury yield movements.

**Technical Outlook Stays Bullish, but Correction Risks Loom**

On the technical charts, gold maintains a bullish structure of higher highs and higher lows on the four-hour timeframe, with short-term momentum leaning positive. Nevertheless, some market analysts caution that as gold approaches a key ascending trendline and with the weekend close nearing, short-term buyers may opt to lock in profits, potentially triggering an intraday correction. If gold can hold above the trendline and digest current resistance, there remains room for further upside; conversely, a break below that support would shift focus to whether recent demand zones can provide effective backing. Overall, the trend remains bullish, but the current phase leans more toward confirmation rather than chasing highs.