Bullish momentum for XAUUSD is clearly strengthening after the price broke above the key resistance zone around 4,110. This area had previously capped upward movement on multiple occasions, but this time, buyers have decisively broken through with strong bullish candles, signaling a return of capital to the market.

The macroeconomic backdrop remains supportive of gold, driven by persistent expectations of a Federal Reserve rate cut, while US bond yields and the US dollar have yet to regain significant strength. This allows the precious metal to maintain a short-term advantage.

In my view, if the 4,110 level holds following the breakout, XAUUSD is likely to establish this area as a new support base before extending its rally toward the 4,200 mark. As long as the price remains above this level and buying pressure provides further confirmation, the bullish scenario remains the preferred outlook.

Conversely, should the price fall back below 4,110 and lose the breakout level, current bullish momentum would weaken significantly, and the prospect of reaching 4,200 would no longer be viable.