XAU/USD rebounds from $2,604 low as dip buyers emerge amid profit-taking

XAU/USD has recovered from an intraday low of $2,604 during Asian trading, following yesterday's sharp profit-taking selloff that highlighted risks in the consensus long trade. The precious metal faced heavy selling pressure as traders locked in gains after the recent rally, with the correction extending into today's early Asian session. Despite the pullback, dip buyers have emerged at lower levels, suggesting underlying bullish sentiment remains intact. Technical indicators show immediate support at the $2,600 psychological level, while resistance sits near $2,650. The rebound reflects gold's continued appeal as a hedge against geopolitical uncertainties and potential currency debasement. However, traders remain cautious as the market digests the recent volatility, with further consolidation likely before a clear directional move emerges. The strength of the US dollar and upcoming Federal Reserve policy decisions will be key factors influencing gold's near-term trajectory.