Gold Price Attempts Comeback but Faces Steep Resistance Ahead

Key Highlights

• Gold stabilizes near $3,870 and launches a recovery attempt.
• XAU/USD breaks above a bearish trend line, testing the $4,000 level on the 4-hour chart.
• WTI Crude Oil stalls near $105.00 and gives back some recent gains.
• GBP/USD holds firm and could push beyond 1.3500.

Gold Price Technical Analysis

Gold slid below $4,000 before finding footing against the US dollar. Buyers stepped in after a low of $3,870 was established.

On the 4-hour chart, XAU/USD has initiated a fresh upward move, pushing above the $3,975 resistance. Price also cleared the 50% Fibonacci retracement level of the decline from the $4,082 swing high to the $3,870 low.

Sellers could remain active around the 100-period Simple Moving Average (red, 4-hour) at $4,070, with initial resistance seen near $4,080.

The primary hurdle lies at $4,140, aligned with the 200-period Simple Moving Average (green, 4-hour). A decisive break above $4,140 could pave the way for further gains, potentially targeting $4,220.

Should selling pressure return, gold could retest $3,975. Initial support is located at $3,920, followed by $3,870. A break below that level could open the door toward $3,800, with further downside potentially exposing $3,500.

WTI Crude Oil was unable to clear the $105.00 resistance, triggering a short-term bearish reversal.

Key Economic Releases Today:

• Bank of England Interest Rate Decision – Forecast 4%, compared to the previous 3.75%.
• US Initial Jobless Claims – Forecast 200K, versus 199K previously.

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