On the 1-hour timeframe, gold (XAU/USD) has shown a strong bullish reaction after dropping from the $4,060 area and touching the $3,950–$3,965 support zone (green box). This area is now acting as the main demand zone, where buyers are actively entering the market.
On the other hand, the $4,005–$4,030 range (red box) is a strong resistance zone that has repeatedly rejected price rallies in recent sessions. The current price is testing this resistance, and how the market reacts here will determine the next move.
Bullish Scenario
If a strong bullish candle closes above $4,030 and price holds above that level, the market could continue upward toward: $4,060 and possibly $4,100
This scenario becomes more likely if market sentiment turns risk-on and the U.S. dollar weakens temporarily.
Bearish Scenario
However, if gold faces selling pressure around $4,005–$4,030 and fails to hold above $3,980, a correction back toward the $3,950 demand zone is likely.
A confirmed breakdown below this support could open the way for a deeper drop toward $3,880.
Summary
Currently, gold is in a range and waiting for a breakout, with the red resistance zone acting as a key decision point.
As long as the price trades below $4,030, the bearish correction scenario remains more probable. But if the resistance breaks, it could trigger a new bullish wave toward fresh highs.
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