Gold Price Forecast: XAU/USD holds above the $4,000 support area

Gold has bounced up from $4,000 but remains capped below a previous support, at $4.050.

A steady US Dollar in cautious markets is acting as a headwind for Gold's recovery.

US ADP employment and Factory Orders might set the US Dollar's direction later today.

Gold (XAU/USD) reversal from highs near $4,250 reached last week extended to the $4,000 psychological level earlier on Tuesday. The pair has bounced up during the European trading session but remains below a previous support area in the $4,050 area so far.

The risk-off market mood is providing some support to the precious metal on Tuesday, although the US Dollar (USD) remains firm, underpinned by fading hopes of Federal Reserve (Fed) easing in September, which is acting as a headwind for Gold.

Technical Analysis: XAU/USD's immediate trend remains bearish

The short-term technical picture remains bearish. The pair has depreciated about 3.7% in the previous three trading days and found support at $4,000, but the recovery attempt, so far, is frail.  The 4-Hour Relative Strength Index (RSI) has bounced up but keeps moving below the 50 line, and the Moving Average Convergence Divergence (MACD) is printing red bars in the histogram.

The pair maintains its bearish trend intact while below an intraday support on the $4,050 area, which has turned resistance. This resistance leaves the $4,000 level exposed. Further down, the targets are the November 6 low at $3,965 and the November 4 low, in the area of $3,930.

A confirmation above $4.050, on the contrary, would ease bearish pressure and bring Monday's highs, around  $4,100 to the focus, ahead of the November 11 high and November 13 low of $4,170.