XAU/USD Tests Key Retracement at $4,098 as Daily and Hourly MAs Guide

XAU/USD has experienced significant volatility, with gold correcting sharply from its all-time high near $5,416 reached on March 2 to a technically significant low of $4,098.27 on March 23, representing a decline of approximately 24%. The selloff followed a prior correction in early February to $4,395 before the strong rebound. Despite ongoing geopolitical tensions, including the war in Iran, safe-haven demand has not been sufficient to sustain the highs, as broader market dynamics and potential profit-taking weighed on the precious metal. Traders are now closely monitoring Fibonacci retracement levels and moving averages on both the daily and hourly charts to identify potential reversal zones and continuation patterns. The $4,098 low aligns with key technical support, making it a critical level for bulls to defend. Resistance is seen near the $4,395 prior swing low, now acting as overhead supply. A break below $4,098 could expose further downside, while a sustained hold above this level may attract dip buyers looking for a recovery toward the $4,700-$5,000 zone.