After an almost vertical rally, XAUUSD is experiencing short-term profit-taking, causing price to pull back from the newly formed high. However, this move still appears more technical than a genuine reversal signal.

The support area directly below is the same zone that previously triggered the breakout. If price returns to this area and buying interest appears again, it would suggest that capital flow continues to favor the bullish trend rather than shifting toward selling.

If support holds, I expect XAUUSD to regain momentum and continue extending its advance. On the other hand, a breakdown below this area could push the market into a deeper correction as it searches for a new equilibrium.

This is only my personal view based on technical analysis. Wishing you successful trading!