- Gold attracts moderate gains after slump to 4,500.
- Oversold conditions present, but rebound not yet convincing.
Gold faced a “double trouble” scenario this week as the Middle East crisis coincided with a hawkish Fed, causing a 10% slump – the worst since February 2020.
The price plummeted to an almost seven-week low of 4,502, approaching a key psychological level before staging a modest rebound. This development now raises the critical question of whether the March sharp sell-off that started from an all-time high of 5,597 has reached a bottom.
From a technical perspective, momentum indicators on the four-hour chart are turning higher from oversold levels, increasing speculation that the recent sell-off may have been overstretched. The rebound above the previously broken support trendline is another encouraging sign; however, some patience may be required, as the price has yet to surpass the 23.6% Fibonacci retracement level of the March downtrend at 4,718 and today’s resistance of 4,735.
Should the price extend its recovery, the next resistance could be found near the 20-day simple moving average (SMA) and the 38.2% Fibonacci retracement level at 4,850. Beyond that, the rally may attempt to break above the 5,000 psychological level and the resistance trendline near 5,016, unless the 50% Fibonacci retracement at 4,960 caps further upside.
On the downside, a move below 4,659 could revive selling pressure, bringing the 4,500 level back into focus. Additional losses may find support around 4,400, while a deeper decline could pause near 4,325, a level last seen in December 2025.
In summary, gold’s sell-off appears to have stabilized near a key support zone; however, bulls need to push decisively above 4,718-4,735 to strengthen bullish momentum and restore buying confidence.
