Gold is recovering after the sharp selloff, but price is now moving into a key resistance area that aligns with the 0.5–0.618 Fibonacci retracement and the descending trendline.

This is an important test for buyers. Unless XAUUSD can break and hold above this zone, the current rebound may remain only a corrective pullback within the short-term bearish structure.

I favor a rejection from this area, with sellers potentially pushing price back toward the recent lows.

The bearish view would weaken only if buyers reclaim the Fibonacci zone and break above the descending trendline with strength.