XAUUSD Price is reacting from a key demand zone where strong buying interest has repeatedly emerged and prevented the market from falling further. The clear reactions seen in the past show that this area continues to act as significant support, providing a foundation for a potential recovery if buyers successfully defend it.

The current structure suggests that price has started to bounce from this demand zone, indicating that selling pressure is gradually being absorbed. If bullish momentum is sustained and price continues to form higher lows, I expect XAUUSD to extend its recovery toward 4,200, a target that aligns well with the structure above.

However, a decisive break below the demand zone would weaken the bullish outlook and suggest that sellers have regained control. For now, the reaction from this historical support area continues to favor further upside.

If you share the same view or notice any additional signals, feel free to leave your thoughts in the comments!