• Dovish Fed rhetoric has buoyed Gold to Fresh weekly highs above $4,150.
• Lower US Treasury yields and a moderately soft US Dollar are buoying precious metals on Tuesday.
• Technically, a break of $4,100 would confirm a trend shift and bring $4,210 and $4,245 into focus.

Gold (XAU/USD) is trading practically flat on Tuesday, holding most of the gains taken on Monday. Price action remains capped below the $4,150 area, yet with downside attempts contained above a previous resistance, at $4,100, as growing hopes that the Federal Reserve will cut interest rates in December are hurting the USD.

Fed Governor Christopher Waller called for an interest rate cut in December at a Fox Interview on Monday, echoing Friday's comments by the New York Fed President John Williams, who said that a December rate cut was possible. This has increased pressure on US Treasury yields, acting as a headwind for US Dollar rallies.

Technical Analysis: A break of $4,150 confirms a trend shift

Gold is consolidating gains above a previous resistance area at $4,100 on Tuesday, after bouncing from the 78.6% Fibonacci retracement of the early November rally, near $4,000, a common target for corrective moves. 

The 4-Hour Relative Strength Index (RSI) is consolidating above the 60 level, and the Moving Average Convergence Divergence (MACD) has crossed above the 0 level and is printing green bars on the histogram, revealing a moderate bullish momentum.

A break above the mentioned $4.150 area (Intraday high, November 13 low), would confirm that the correction from the $4,250 area has completed, and bring the November 14 high, at $4,210, to the focus, ahead of the mentioned November peak, at $4,245.

A bearish reaction below $4,100, on the contrary, might increase pressure towards the November 21 and 24 lows, in the area between $4,020 and $4,040 ahead of the November 18 and the, $4,000 psychological level.