FX.co ★ XAU/USD, GOLD

XAU/USD is currently showing a strong bullish recovery on the daily chart, but I believe gold has reached an important technical area where the next few sessions could determine whether this rally develops into a broader bullish trend or enters a temporary correction. The chart shows a clear transformation in market structure after the prolonged decline from the previous highs. Buyers have gradually regained control, creating higher lows and then accelerating the upward movement during August At the current price area around 4,623–4,634, gold is approaching the 4,650–4,700 zone, which I consider an important resistance region. This area deserves special attention because the recent rally has been quite aggressive. A daily close above 4,700, followed by a successful retest, would significantly strengthen my bullish outlook and could open the door toward higher psychological levels. On the other hand, failure to break this resistance could encourage profit-taking after such a strong advance One of the most interesting elements on my chart is the RSI. The 14-period RSI is currently around 71, which places it slightly above the traditional overbought threshold of 70. In my opinion, this does not automatically mean that gold must fall. Strong trends can remain overbought for an extended period, especially when market momentum is accelerating. However, it does tell me that chasing the price aggressively at the current level carries greater risk. I would personally prefer to see either a controlled pullback or a confirmed breakout before considering a new position. The MACD gives me a more constructive signal. The indicator is firmly in positive territory, while the histogram has expanded considerably during the recent rally. This suggests that bullish momentum is not merely a short-lived reaction but has strengthened meaningfully. As long as the MACD remains above its signal line and the histogram does not begin contracting sharply, I would continue to respect the current bullish structure For support, I am watching the 4,560–4,570 area first. This zone is close to the recent breakout structure and could become an important short-term support if gold experiences a normal correction. Below that, the 4,480–4,500 region becomes much more important from my perspective. A sustained move below 4,500 would weaken the current bullish setup and could indicate that the recent rally is losing momentum Fundamentally, the recent strength in gold is also supported by a weaker U.S. dollar and changing expectations around Federal Reserve policy. Recent market reports have highlighted gold reaching above $4,600 as investors focus on U.S. inflation data and upcoming Federal Reserve communication.