XAUUSD: Pullback Sets The Bulls!GoldOANDA:XAUUSDDomicChainaGold is undergoing a correction during the week's opening session following a strong rally late last week. Spot gold has dipped approximately 0.5%—a drop of over $20/oz—to hover around $4,322, quite close to the $4,320 level visible on the chart. On the other hand, the macroeconomic backdrop has not truly deteriorated for gold. Weak US labor data has lowered expectations for a September Fed rate hike from roughly 67% to 44%, while the USD remains near two-month lows. These factors continue to help limit downward pressure on XAUUSD. On the H4 timeframe, it is notable that the price has broken out of the previous downtrend channel and is holding above the EMA34 and EMA89, indicating that the bullish structure remains intact. I am keeping a close watch on the $4,200–$4,250 zone—particularly around $4,250—which serves as both a technical support level and sits near the EMA34. A correction to this area would align better with a pullback within an uptrend, rather than signaling an immediate reversal. If XAUUSD shows a clear bullish reaction around the $4,200–$4,250 range, I lean towards the scenario where the price regains momentum and targets the $4,440–$4,480 zone.