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Gold Rebounds After a Sharp Sell-Off: Is This a Recovery or Just a Temporary Bounce?
Gold is trading around $3,900, attempting to recover after last week's aggressive correction. Buyers have returned near the $3,875–$3,890 region, but I would not consider this a confirmed bullish reversal yet. The bigger challenge is whether gold can reclaim important resistance and attract sustained buying.

Last week's weakness came from a combination of profit-taking, concerns about tighter U.S. monetary policy and inflation-related uncertainty. Expectations of higher interest rates increased pressure on non-yielding assets like gold. The recent decline also weakened short-term technical structure, forcing traders to reassess their positions.

4H timeframe: The $3,920–$3,950 region is the first important resistance zone. A confirmed breakout could open the way toward $3,980 and $4,020. Failure to reclaim this area could bring another selling wave.

1H timeframe: Gold is attempting to stabilize around $3,900. Holding $3,890 and moving above $3,910 could support a recovery toward $3,920–$3,940. However, losing $3,875 would expose $3,850 and potentially $3,820.

My outlook: I am cautiously watching the recovery rather than chasing the current bounce. A sustained move above $3,950 would improve the bullish structure, while a breakdown below $3,875 would put sellers back in control.

Gold's next move will depend heavily on the U.S. dollar, Treasury yields and upcoming economic data. For now, confirmation matters more than prediction.

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