Gold price action points to a manageable recovery after a strong bearish phase. Earlier, the price found strong buying support in the demand zone between 4,650 and 4,700 points as selling pressure subsided and the market stabilized. This area remains important support and a key level to monitor if prices decline again.

After the rebound, the price begins to move higher, forming higher lows, indicating short-term buying power. However, this is still a corrective move as the price is currently approaching the strong supply zone between 5,050 and 5,150. This area has acted as resistance before and may attract sellers again.

The area around 5,080 looks favorable for sellers as selling pressure is likely to increase near the supply zone. Risk levels are set above 5,160, as continued gains would require clear acceptance above this level. If the price fails to hold near the resistance, a pullback is likely.

On the downside, if sellers regain control, the price could fall below 4,900. Further weakness could push prices first towards 4,950 and then towards key demand areas around 4,700. Expect buying interest to re-emerge at these low levels.

Generally speaking, markets move between well-defined areas of supply and demand. Price is still within a horizontal range, and it is best to make trading decisions near key support and resistance levels, as trading in the middle of the range carries higher risk and less clarity.

Source link