From a technical perspective, XAU/USD remains well below its 200-day Simple Moving Average (SMA) and continues to trade within a short-term bearish trend inside the established range that has persisted for about a month. This consolidation within a narrow range following the recent decline also reinforces the bearish outlook for gold.

Momentum indicators do not currently provide clear signs of a recovery. The MACD remains in negative territory, although its histogram is moderately positive, while the Relative Strength Index (RSI) stands at 47.00, hovering just below the neutral 50 level, indicating weak buying interest. This suggests that any recovery attempts are likely to be capped by persistent selling pressure.

The upper boundary of the trading range at $4,200 continues to serve as the nearest major resistance level. A sustained breakout above this level could lift gold toward its 200-day Simple Moving Average, currently located near $4,500. Buyers will need to overcome this technical barrier to weaken the prevailing downtrend and pave the way for further gains.

On the other hand, immediate support is located in the recent $3,980–$4,000 level, where buying interest previously emerged. A daily close below this zone would be viewed as a fresh bearish signal, leaving XAU/USD vulnerable to further losses in the absence of clearly defined support levels.