Gold Price Forecast: XAU/USD jumps to fresh multi-month highs above $1,830

• Gold climbed above $1,830 for the first time since late June.
• XAU/USD volatility increases amid thin liquidity conditions.
• Rising US Treasury bond yields don't seem to be limiting the pair's upside.

After dropping toward $1,800 in the early American session on Tuesday, Gold price gathered bullish momentum and rose above $1,830 for the first time since June 22 before retreating modestly. As of writing, XAU/USD was up 1.3% on the day at $1,823.

Earlier in the day, China announced that it will reopen its borders and forego quarantine obligations from January 8. With this decision, China will essentially be ending its zero-COVID policy. This development seems to be helping XAU/USD push higher on heightened optimism for an improving demand outlook.

Meanwhile, the 10-year US Treasury bond yield holds in positive territory above $3.8% but does little to nothing to derail Gold price's rally.

It's also worth noting that liquidity conditions remain thin in markets following the long weekend and ahead of the New Year holiday, possibly causing XAU/USD's volatility to remain high.

Earlier in the day, the data from the US showed that house prices remained unchanged in October. Additionally, the Federal Reserve Bank of Dallas' Texas Manufacturing Survey showed that the General Business Activity Index declined to -18.8 in December from -14.4 in November. The US Dollar struggles to find demand following the data releases, allowing Gold price to preserve its bullish momentum.

Technical levels to watch for