Gold XAU's downtrend since the $4700 phase top isn't over yet, and a major rally won't start anytime soon. After breaking below $4200, the market has entered a weak downward trend. It's highly likely to continue testing $4100, $4000, or even near the June low. However, the downside below $4000 is limited, so there's no need to be overly bearish. The trend is similar to April: after a big drop, it entered a prolonged low-level consolidation phase. Currently, October is in the post-drop consolidation stage, which might last about a month. Only after this consolidation ends will a rebound begin. The rebound target is expected to be $4500–$4600 or even higher. Key resistance levels: - Short-term resistance: $4200–$4220 - This range has been tested multiple times in October but faced rejection and pulled back. - Confirmation logic: If the market fails to effectively break above $4220, the weak consolidation bias remains, with repeated tests of $4070, $4100, or even new lows. Only by holding above the key resistance level can the weak trend be reversed.