Gold Rebounds Sharply — Can $4,000 Become Support Again?
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Gold has recovered strongly as falling oil prices and renewed hopes for diplomatic progress between Iran and the U.S. eased some inflation concerns.
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But with the U.S. midterm elections tomorrow and no final Middle East agreement yet, I still expect volatility to remain high.
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Technically, $XAU is trading inside the Heavy Support Zone ($3,887-$4,007).
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Last week’s breakdown below this structure and nearby Support Lines now looks increasingly like a Fake Breakout, as sellers failed to maintain control.
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The former Resistance Zone ($3,976-$3,992) is now an important area I want to see buyers defend during any short-term Pullback.
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From an Elliott Wave perspective, bearish Primary Wave 5 may also be complete, potentially opening the door for a new bullish sequence.
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My current scenario is for a small Pullback first.
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As long as Gold can establish itself above the psychological $4,000 level, I expect another attempt toward the key $4,025 level.
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A confirmed breakout above $4,025 could strengthen the recovery toward $4,057 and the nearby Resistance Lines.
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Trade Setup
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TP1: $4,021
TP2: $4,057
SL: $3,920
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Key Level: $4,025
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For me, the roadmap is simple:
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Hold $4,000 → Attack $4,025 → $4,057 comes into focus
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Lose the current structure → Bullish recovery weakens
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One thing I’m watching very closely: any major headline around Iran, the U.S., or tomorrow’s election could change sentiment quickly.
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Which comes first?
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🟢 $4,057
🔴 $3,920
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#GOLD