Gold Price Analysis Shows Weak Rebound After Heavy Selling Wave

Gold is attempting to stabilise after a sharp sell-off that pushed XAU/USD close to $4,540.00. In the 1-hour chart, shared by Yağmur Süzen, the price is consolidating as the recent decline has lost a number of support levels.

The short-term structure still looks decidedly bullish for selling, as gold is trading below $4,566. But the $4,509-$4,566 zone has become the primary consideration zone with traders waiting for a decisive break before making their next call.

Gold Struggles After Heavy Selling

Gold resumed its downward march from the vicinity of the $4,678 level and advanced swiftly through some key intraday support levels. The TradingView chart shows price falling below $4,651, $4,639, $4,605, and $4,583 before slowing near $4,541.

The short-term X chart structure was altered with that move. Gold was coming off a wide range earlier but broke below $4,605 to put sellers in the driver’s seat and push the price deeper into lower supports.

The sell-off has been followed by a horizontal chart pattern in XAU/USD. The pause is indicating some easing of selling pressure, but buyers have yet to make a substantial comeback.

In particular, the price is, again, held below the nearby resistance. The downbeat move from $4,700 to $4,566 is likely to be just a brief respite in a deeper correction unless gold is able to recover there.

$4,509 and $4,566 Define Direction

The short-term critical support was placed at $4,539-$4,541 by Yağmur Süzen. This is the first level of support that needs to be defended during the next session, as gold is currently trading around this area.

The primary support is then at $4,509 below that zone. A clean break under $4,509 would put new pressure on $4,480 and then $4,450.

The good news is that $4,566 is the initial strong resistance. If the hourly price closes above that level, the near-term sentiment would turn more positive and set up a path towards $4,583 and $4,605, respectively.

But the TradingView chart indicates that gold continues to muddle around below that initial level. That helps to keep the market within the $4,509–$4,566 price channel that could determine the short-term trend.

Momentum Shows Weak Recovery Attempt

The Stoch RSI is approaching the overbought range with levels of around 88.42 and 94.16 on the 1-hour time frame. That is an indication of a short-term rebound, even though the price is still below the previous breakdown levels.

This offers a challenging situation for the purchaser. If a strong bounce occurs when the Stoch RSI is high, it could indicate that recovery momentum is weakening unless there’s a significant increase in demand in the near future.

It’s also a period of consolidation, and volume doesn’t seem that big either. But the recovery attempt appears weak, as does the chart, Süzen said, as gold has been consolidating sideways instead of trying to recover lost levels.

Gold could still rally to end in the United States any day if it is rattled by any U.S. data or geopolitical events. XAU/USD is currently in a short-term bear correction with a weak attempt at recovery as long as the price remains outside of the $4,509–$4,566 range.