Alex Borzak
⬤ Gold is going through a correction phase on the 4-hour chart after dropping from recent highs. The metal rallied strongly before peaking and then sold off sharply, falling back to a rising blue trendline that's been holding up price throughout the broader uptrend. Right now, the market is reacting off this ascending support line, creating a short-term bounce within what's still an overall downward correction.
⬤ The chart shows gold climbed in a structured rally before topping out and reversing lower. That selloff brought XAU/USD back down to the long-term rising support line, where it's now stabilizing and showing signs of life. This zone has worked as a reaction point before, and the current bounce looks more like a technical response than any kind of trend reversal. Price is currently hovering around the mid-4,400 region after the initial rebound.
⬤ Based on the chart setup, the bounce from the rising trendline could push gold back toward the 4,700 to 4,800 resistance zone. That's where selling pressure showed up before. After this corrective bounce plays out, the broader expectation is for gold to resume moving lower, with the next downside target sitting near 4,200. This forecast is built on the current price structure and the continuation of the corrective move.
⬤ Reactions around major trendlines like this often shape short-term sentiment and volatility in the gold market. Sharp moves after extended rallies tend to reset expectations around where support and resistance will hold. With XAU/USD trading between key technical levels right now, how price behaves in this zone will likely determine whether gold holds above longer-term support or pushes deeper into correction territory.
Alex Borzak
