XAU/USD Analysis Today: Gold Holds 4010 Support, Eyes 4160β4180 Target
Gold Holds 4010 Support: XAU/USD Eyes 4160β4180 Target as Bulls Regain Control
After a week of high volatility, Gold (XAU/USD) finally found its footing at the 4010 support zone, confirming it as a strong demand area. Buyers stepped in aggressively, pushing prices up to a local high of $4,138 β a clear sign that bullish momentum is returning to the market.
XAU/USD Technical Analysis: Bulls Defend the 4010 Zone
During the recent trading session, gold successfully stabilized above the 4010 support, signaling that institutional buyers are protecting this level. This bounce triggered a wave of short covering and fresh buying pressure that sent prices back into the 4130β4140 region.
Currently, the market is consolidating above 4070β4080, which has now become the key intra-day support area to watch.
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Key Support: 4070β4080
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Immediate Resistance: 4160β4180
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Trend Bias: Bullish while above 4070
If the price remains above this critical level during the European session, the bullish structure remains intact. Traders can anticipate further upside toward the 4160β4180 resistance zone. However, a confirmed break below 4070 would invalidate this bullish scenario and could open the door for a deeper retracement.
XAU/USD Price Forecast: What Comes Next for Gold?
As long as gold holds above $4,070, buyers maintain the upper hand. Momentum indicators such as the RSI are gradually recovering from oversold conditions, and short-term moving averages are starting to flatten β another sign that the downtrend is losing strength.
The next bullish breakout could target the 4160β4180 zone, where traders should watch for potential rejection or continuation toward the 4200 psychological level.
But caution is warranted β a clean breakdown below 4070 would shift market sentiment back to bearish, with possible moves toward 4035 or even the 4010 demand zone again.
Market Sentiment: Traders Regaining Confidence
After the strong rejection from 4010, sentiment in the gold market is improving. Many traders are regaining confidence in the medium-term bullish outlook, especially as the US Dollar Index shows signs of exhaustion and yields remain under pressure.
However, macro factors such as upcoming U.S. data releases and potential shifts in Fed policy could still inject volatility into XAU/USD pairs β making risk management crucial for short-term traders.
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Conclusion
Goldβs bounce from 4010 has reaffirmed this level as a solid base for buyers. As long as the price holds above 4070β4080, the bias remains bullish toward 4160β4180. But if that floor gives way, expect a sharp correction.
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