Gold Price Analysis: XAU/USD Tests Support as Traders Assess Next Move

Spot gold was about $4,124 late Tuesday, with a range of $4,104 to $4,152 for the day.

The market is stuck between the prospect of a technical bounce and some ongoing upside pressure from high US Treasury yields. The gold market bounced back as yields and the dollar weakened, but the market is nervous about expectations for rates, Reuters reported.

There are two trader charts, each offering a unique perspective on the current situation. PA STAR is picking up on a possible bullish intraday pattern, and the TradingView chart has a sequence of Bollinger Band indications and a negative money flow.

PA STAR Sees Buyers Building a Short-Term Setup

Gold is rebounding from an earlier sell-off and heading back to a key resistance area, according to PA STAR’s 15-minute time frame chart of the XAU/USD. The price is above a breakout of the red zone, indicating that sellers are still engaged around the upper portion of the recent price range.

The chart indicates that there is an area of green projected below the resistance area, and the setup suggests that if the buyers start to take control, then a move higher may be in the cards. Source: Pastar Via X

Price has already pushed off the lower support level, providing bulls with another level to try and push higher from.

The key to note for traders is that gold is not just testing out the immediate resistance but is actually trying to pierce it. If the price stays above that level, it would support the bullish intraday bias. If the price fails there, we may see a reversal towards the lower support depicted on the chart.

The overall setup is in line with the rest of the markets’ efforts to stabilize. Gold has been ailing below $4,200, and there is a close eye on the downside levels.

TradingView Chart Shows Weak Money Flow

The gold TradingView chart offers a more short-term perspective of the price action for gold. In the snapshot shown, price has bounced back and moved into the upper half of the 1-minute chart range, bringing XAU/USD back around $4,163.84.

There are multiple Bollinger Band buy and sell signals on the session. The multiple signals indicate the swiftness with which the momentum has shifted in the price of gold from highs to lows, and vice versa.

Price rallied again on the upside, but the latest part of the move formed a rejection from the intraday high.

Chaikin Money Flow is -0.09. The negative reading indicates that selling pressure is still there even with this recent recovery. Source: TradingView

Sellers, on the other hand, require better engagement to substantiate that the rebound is broader-based.

Any movement above the latest intraday high would be a help to the short-term structure. On the other hand, if gold sellers start selling again, prices may head back toward the lower range set during this session.

$4,100 Remains the Bigger Technical Test

The big picture is still bearish as gold closes near $4,100. The current market analysis suggests $4,100 as a significant support level; a failure to hold at this level may have further implications for lowering towards $4,040.

That’s also important, too, since gold has dropped significantly from its 2026 high. Front-month futures settled at $4,128.40 on October 5, down 22.38% from the January record of $5,318.40.

Traders should watch the $4,100 level to the downside for the remaining sessions, then the 4,160-4,200 level to the upside. It may be a clean recovery from the upper zone, allowing bulls to breathe and pick up the bounce. If the price dips below $4,100, however, it would reinforce the bearish argument and draw focus to $4,040.

The macro background is also very important. Multi-decade highs in US Treasury yields and the Fed’s rate outlook have been two influences impacting gold demand recently.