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Gold prices tested critical support at $4500 (50% retracement of the $4099/$4889 rally) in Wednesday trading, marking a key technical level for bears. While the metal edged higher amid partial profit-taking from oversold conditions and eased Middle East tensions following U.S. peace talks, the broader bearish trend remains intact. Technical analysis suggests this support zone could act as a temporary floor, but sustained bullish momentum requires a break above $4889 to challenge recent resistance.
For traders, the $4500 level is crucial for assessing Gold's near-term direction. A breakdown below this level could reignite bearish pressure toward $4099, while a rebound would test market resilience amid mixed geopolitical signals. Geopolitical risks, particularly in the Middle East, remain a wildcard that could drive safe-haven demand.
Investors should monitor U.S. monetary policy shifts and regional conflict developments. Technical indicators like the RSI and MACD will provide further clues on momentum shifts. The coming weeks will be pivotal in determining whether Gold consolidates or resumes its downward trajectory.
