GOLD requires breakout to confirm next rally.

After yesterday's sharp decline following the CPI release, gold has found buying interest again around the 4010–4025 support zone. Although the short-term trend remains constructive, price is now trading beneath a key resistance area, suggesting that buyers still need confirmation before a stronger recovery can develop.

On the H1 timeframe, gold is attempting to build a higher low after defending the breakout support. However, bullish momentum will only strengthen if price successfully breaks above the nearby resistance and attracts fresh buying pressure. Until then, the market is likely to remain in a consolidation phase with two-way volatility.

📍 Key Levels:

🔹 4010 – 4025
Key support and preferred buying zone.

🔹 4080 – 4100
First resistance. A breakout would confirm bullish continuation.

🔹 4130 – 4145
Major upside target and higher-timeframe resistance.

🔹 3980 – 3995
Critical support if buyers fail to defend the current structure.

✅ Preferred Scenario:

✔️ Gold continues holding above 4010–4025, maintaining the short-term bullish structure.

✔️ A confirmed breakout above 4080–4100 would increase the probability of an extension toward 4130–4145.

✔️ If resistance rejects price once again, gold may revisit the support zone before attempting another breakout.