Usman Salis
⬤ Gold showed signs of steadying after a sharp drop, with XAU/USD holding firm above the $4,880 demand zone. After the sell-off lost steam, buyers stepped in around this level, stopping the immediate downward momentum. This price area is now serving as a crucial reference point for what comes next.
⬤ The chart shows price action stabilizing just above the highlighted demand zone, suggesting buyers are actively defending the $4,880 mark. If this level continues to hold, gold could push higher toward the next resistance targets at $5,030, followed by $5,160 and $5,240. These levels would act as key checkpoints if bullish momentum builds from here.
⬤ While the initial bounce looks promising, the technical setup remains fragile. The recovery scenario hinges on gold staying above $4,880 in the coming sessions. If prices slip below this threshold, downside pressure could return quickly, potentially driving gold toward the lower support zone near $4,750 shown on the chart.
⬤ The $4,880 level matters because it's become a near-term battleground. Holding above it would show that buyers are absorbing the selling pressure from the sharp drop, supporting the case for a corrective bounce. A break below would flip sentiment bearish again and put lower price targets back in play, leaving traders on edge as they wait for clearer signals.
Usman Salis
