Gold Price Forecast: XAU/USD recovery might find resistance at $3.760

• Gold has bounced from $3,715 lows, favored by cautious markets as geopolitical tensions remain
• Technical indicators in the daily chart suggest the possibility of a deeper bearish correction.
• XAU/USD's upside attempts are likely to find resistance at the $3,750-3,760 previous support area.

Gold is regaining some of the ground lost on Tuesday. The precious metal has extended its recovery from $3,715 lows, reaching $3,760 area at the moment of writing, where a previous support might have turned into resistance.

Bullion is drawing support from the cautious market mood amid the ongoing geopolitical tensions between Russia and its European neighbors. Denmark has reported coordinated drone attacks that have forced the closure of some of the country's main airports earlier in the day, and all signs point to Russia.

Technical Analysis: Gold's upside momentum seems frail 

The pair bounced up from lows, but technical indicators are mixed. The 4-hour RSI is still above the 50 level, but the daily chart suggests that the correction from all-time highs, at $3,770, might be deeper. The Daily RSI shows a bearish divergence, suggesting that the rally from mid-August highs has lost steam, and the MACD hints at an imminent bearish cross.

Bulls are likely to be challenged at the previous support area above $3,750, where the pair was contained on September 23. Above here, the September 23 high, at $3,790, and the psychological level at $3,800 would come into target.

To the downside, immediate support is at Wednesday´s low of $3,715, ahead of the previous all-time high, in the area of $3,700. Further down, the 61.8% Fibonacci retracement of last week's rally, at $3,690, is a common target for corrective reactions.