Gold prices experienced a sharp reversal after hitting a temporary peak of $5,400, initially driven by geopolitical tensions. The precious metal is now at risk of snapping its four-week winning streak as market momentum shifts downward. This correction follows the emergence of a 'bearish engulfing' pattern on the weekly chart, suggesting a potential exhaustion of the recent rally. Prices recently tested the critical $5,000 psychological level, which has managed to hold as key support for the time being. Traders are closely monitoring this pivot point to determine the medium-term direction for XAU/USD amid ongoing volatility. A failure to maintain the $5,000 level could trigger further technical selling and deeper corrections across the gold market.
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