Gold Prices Surge Above $4,600 as Bullish Bias Prevails

The price of gold (XAU/USD) continued its upward trend for the second consecutive day, trading at around $4,610 during European hours on Friday. The XAU/USD pair is maintaining a bullish bias as it holds above both the nine-period and 50-period Exponential Moving Averages (EMAs), keeping the short- and medium-term trends aligned to the upside.

The Relative Strength Index (RSI) stands at around 67, indicating that the price momentum remains strong but may be nearing overbought conditions. If gold can break above its three-month high of $4,697.07, reached on August 25, it could continue to rise towards the upper boundary of the ascending channel around $4,850.

However, analysts at Deutsche Bank note that a firmer backdrop in rates and commodities may put downward pressure on gold prices. As real yields firm and oil extends gains, the bank suggests that gold may soften as investors become less likely to hold onto it as a safe-haven asset.