Sergey Diakov
After a turbulent week, gold has stabilized as buyers emerged near a major technical support level. The precious metal is showing early signs of recovery from the $4,050 area, which traders are now watching closely as a potential launchpad for the next move higher. This rebound comes as global investors continue navigating uncertain economic conditions and fluctuating risk appetite.
Gold Rebounds from Critical Technical Zone
Gold has found temporary footing as market participants stepped in to defend a crucial support area. Trader ShafynKhan recently shared that he entered a long position, noting this zone as essential for bulls to maintain control.
The 4-hour chart reveals gold pulling back into a key demand block between $3,950 and $4,080 before displaying signs of stabilization. This region has historically provided strong support for upward momentum, indicating buyers are once again attempting to hold the line. A clear bullish rejection candle has formed just above the lower boundary, showing that recent selling pressure has been absorbed. Price is now hovering near $4,080 after sliding from the $4,350–$4,380 range earlier this week.
Technical Structure and Recovery Setup
The projected upside target zone aligns with previous supply levels where gold may retest recent highs if momentum builds: a sustained hold above $4,050, it could confirm a short-term reversal pattern and open the door for a move back toward $4,350–$4,380, if price breaks below $4,000, a deeper pullback toward $3,940 becomes likely, where additional buying interest may reside, the current consolidation suggests bulls are regrouping after absorbing downside pressure.
Market Context and Broader Outlook
This technical bounce coincides with softer U.S. Treasury yields and persistent demand for safe-haven assets. Investors remain cautious ahead of upcoming economic data and central bank updates, both of which could shape gold's trajectory in the coming weeks. Ongoing inflation concerns and geopolitical tensions continue supporting the long-term bullish case for gold. Many market watchers are now focused on whether this support zone can anchor a fresh rally as risk sentiment shifts.
Sergey Diakov
