$XAU Gold is only consolidating weakly after the sharp drop. The rebound is merely a recovery, not a reversal. 3925 is the starting point of the rise and a key level for a resistance-support reversal.
Trading plan: Watch 4060–4080 overhead. If price cannot hold above 4080, the bearish outlook remains unchanged. 3970–3950 is the key support zone; a break below it would open up further downside.
Only a decisive move above 4080 would show that the recovery has exceeded expectations. If price pulls back to 3960 and holds, you could try a small long position, but this would be countertrend; set a stop loss at 3925.
Trading plan: Watch 4060–4080 overhead. If price cannot hold above 4080, the bearish outlook remains unchanged. 3970–3950 is the key support zone; a break below it would open up further downside.
Only a decisive move above 4080 would show that the recovery has exceeded expectations. If price pulls back to 3960 and holds, you could try a small long position, but this would be countertrend; set a stop loss at 3925.
