XAU/USD Pulls Back 1.12% but Maintains Bullish Technical Bias

Gold (XAU/USD) experienced a notable intraday pullback of approximately 1.12% during Tuesday's session, retreating from recent highs as traders took profits amid a broader reassessment of risk appetite. Despite the day's decline, the precious metal maintains its underlying bullish technical structure, suggesting the pullback may represent a healthy correction within a larger uptrend rather than a trend reversal. The decline comes as the US dollar showed intermittent strength, applying downward pressure on dollar-denominated gold. Key technical levels remain in focus, with traders monitoring nearby support zones that could serve as a foundation for the next leg higher. The broader bullish bias is supported by persistent geopolitical uncertainties, ongoing trade tensions, and expectations surrounding Federal Reserve monetary policy. For traders, the current pullback may present a potential buying opportunity if support holds firm. A failure to maintain key support, however, could signal a deeper correction. Near-term price action will likely hinge on upcoming US economic data releases and any shifts in central bank rhetoric.