Gold Price Holds Above $4000 as Buyers Test the Next Major Resistance Level

Prices have moved closer to the resistance level at $4020-$4025 after a strong intraday move, and investors wonder whether they can successfully cross above the $4,000 mark and further proceed to recover.

Gold Price Recovers After a Sharp Intraday Drop

At press time, gold prices are trading at $4017.315, up $40.735 (1.02%). On the hourly chart, price moves near $4,016.90, gaining 0.04% or 1.6 pts.

The gold price faced sellers just below the $3,970 mark, where sellers were pushed by aggressive buyers, forcing gold toward the peak of the daily range. The rebound shows that after a fall, strong buying appeared in the market.

Gold stayed above the $4,000 psychological level, which can be considered the reference point in the upcoming hours and days for all participants.

In the short-term trading range, the selling pressure was quite high with frequent oscillations on hourly charts.

Nonetheless, a powerful recovery was made. It should also be taken into account that the market moved within a wide range from $3,980 to $4,200 on the monthly charts. This means it’s in consolidating mode after the previous larger increase. The current trading location is above lower-range boundaries but still below the month’s’s ceiling level of around $4,200.

Resistance Near $4025 Controls the Next Gold Move

Trading below the $4000 resistance level has made it very difficult for the next move, and now sellers test the nearby level around $4020-$4025. For gold to continue climbing, it has to clearly pass this level and sustain above $4,025, where it could proceed to test even higher peaks intraday. Any pullback should be followed by defense from buyers and consolidation.

Below the current price, the support is located at $4,010 and then a very significant level of $4,000, which should act as a pivot point.

Further south from the $4000 level, support areas are found between the $3,970 and $3,975 levels. As of late afternoon, the price broke below this level and recovered, so the selling interest quickly faded. A breach below $3,970 might result in new tests in the $3,965 region or lower. A powerful daily increase was made despite relatively weaker sentiment in the market in recent times.

Due to the non-availability of the trading volumes in the offered price, the price analysis depends on the structural behavior and hourly chart patterns.

Until the clear break of the resistance or support levels, it’s expected that gold will continue its behavior of playing around the $4,000 level.

On a longer-term basis, gold prices recorded a 20.23% profit in the last 12 months and a massive 121.67% profit over 5 years. The returns of the last decade stand at a very positive 200.90%. However, the shorter term, particularly over 5 days and 1 month, saw a loss of 1.80% and 5.65%, respectively.

The negative returns also extended to 6 months (-13.03%) and year-to-date (-7.14%). While the positive gain for the current day clearly signals renewed buying activity after the previous corrections, this single session will not be able to mark a sustainable trend reversal.

The gold price needs to break the $4,000 level and consolidate above it, and it also requires the breaking of the resistance at the $4,025.00 level. Any loss in momentum will signal a fresh downside correction towards the $3,975, $3,970, and $3,965 levels.