From a technical perspective, the short-term trend is moderately bearish, as the XAU/USD pair has not been able to break above the $4,550 level, near which the 100-day simple moving average lies. This has capped the overnight upward movement, indicating a corrective phase within a broader downward trend.

Additionally, the MACD indicator remains in negative territory, with the histogram positioned below the signal line, reinforcing a sustained bearish momentum. Moreover, the Relative Strength Index (RSI) is moving deeper into the oversold zone, indicating increased selling activity, but it also suggests the potential for a correction.

However, if the price of the yellow metal closes below the round $4,400 level, the next support level will be the Tuesday low, followed by the Monday low or the 200-day SMA. For upward movement, bulls need to overcome Wednesday's high at the 100-day SMA to return to the $4,500 level.