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Gold prices are set to end the week on a positive note, up by over 2.79% as the precious metal enjoyed a $90 US Dollar (USD) rally due to the latter weakness sponsored by uncertainty about global trade. At the time of writing, XAU/USD trades at $3,326.

XAU/USD holds at $3,326 after hitting ATH of $3,358; real yields rise but long weekend profit-taking caps rally

European and US markets are closed due to a long Easter weekend, so news flows are light. San Francisco Federal Reserve (Fed) President Mary Daly crossed the wires and said that the economy is in a good place, though some sectors are slowing down. She added that policy remains restrictive in good place, exerting downward pressure on inflation, and added that neutral rates “may be rising.”

Bullion prices dropped after hitting an all-time high (ATH) of $3,358 as traders booked profits due to the long weekend. Wednesday’s hawkish speech by Fed Chair Jerome Powell capped the precious metal advance, even though uncertainty over US trade policies and geopolitical risks may underpin Gold prices.

Yields rose, with the US 10-year T-note yield rising five basis points to 4.333%. US real yields, which are calculated by the yield of the nominal note minus inflation expectations, climb five bps to 2.163%, a headwind for Gold prices.

Next week, the US economic docket will be packed by a flurry of Fed speakers, S&P Global Flash PMIs, Durable Goods Orders and the University of Michigan Consumer Sentiment final reading.

XAU/USD Price Forecast: Technical outlook

Gold's uptrend remains intact despite Thursday’s pullback below the $3,330 mark. As prices recover some earlier losses, the lack of downside follow-through suggests limited acceptance of lower levels, keeping the door open for further gains.

Momentum-wise, the Relative Strength Index (RSI) remains overbought but not yet at the extreme 80 level. However, a mean-reversion move could be on the horizon with the RSI turning lower.

In that case, initial support lies at $3,300, followed by the April 16 low at $3,229. On the upside, a break above $3,350 could set up a test of the year-to-date (YTD) high, with the next target at $3,400.

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