The current structure remains negative, but XAUUSD is approaching a significant demand region and is due for a rescue rally if bulls enter following a liquidity grab above $4,000.
Fundamentally, the sustainability of any gains in gold for the rest of the week will largely depend on the US dollar’s performance, the upcoming US retail sales report, geopolitical developments and comments from Federal Reserve policymakers. Additionally, US bond yields and broader market risk sentiment will influence USD price dynamics, thereby impacting gold prices.