Gold Price Nears $4,600 Mark Again, Can It Successfully Break Through This Time?

TradingKey - On March 31, gold prices ( XAUUSD) strengthened again during intraday trading, briefly breaking through the $4,600 mark to reach $4,619.46, before fluctuating near the $4,600 level. As of press time, gold prices are trading around $4,590, with current gains reaching 1.78%.

Previously, gold experienced intense volatility in late March, witnessing a rapid rebound from a four-month low of $4,100 followed by a persistent tug-of-war around the $4,500 level, as market sentiment clearly favored high-volatility trading.

The immediate catalyst for this rally stems from Fed Chair Jerome Powell's wait-and-see stance regarding the war. Powell stated that the Federal Reserve can wait and observe how the impact of the war in Iran on the economy and inflation evolves; furthermore, Powell pointed out that policymakers typically overlook the short-term effects of shocks such as rising oil prices.

Powell's cautious approach to the war directly dampened expectations for Fed rate hikes this year, causing the U.S. Dollar Index to weaken slightly and providing short-term momentum for gold's ascent.

From a technical perspective, the $4,600 level has become an important psychological threshold for market repricing. After plunging to a low of $4,100 on March 23, gold rebounded sharply and hit the $4,600 mark for two consecutive trading days before pulling back again, proving that resistance near $4,600 is relatively strong. If gold's closing price can hold above $4,600 today, further upside potential will be unlocked, with a likely test of the $4,860 resistance level.