But a strong recovery above $4,200 after a drop to $3,850 will increase the chances of an upside breakout. A break above $4,200 will push prices towards $4,350. On the other hand, a break above $4,350 will open the door for a move towards the $5,000 area. A break below $3,850 will increase the chances of a strong and quick drop in the gold market to mark the final low.
Gold Must Reclaim $4,200 to Confirm a Bullish Reversal
The 4-hour chart for spot gold also shows strong bearish price action since March 2026. The formation of rounding tops below $5,000 and then below $4,500 indicates bearish pressure in gold. Prices must recover above $4,200 in the short term to confirm bottom and initiate a rally towards $4,500. A break above $4,500 will be a positive sign and open the door for a move towards $5,000.