FX.co ★ FlyWithEagle | XAU/USD, GOLD

XAU/USD (Gold Spot) December 5, 2025 15 Minutes Timeframe

Chart Analysis: Gold Spot (XAU/USD) 5-Minute Timeframe The provided 5-minute chart for Gold Spot (XAU/USD) shows a session characterized by high volatility and clear liquidity runs, culminating in a recent breakdown. The price action unfolds within a defined internal range before making a decisive external move. Initially, the market established a consolidation zone between approximately 4,212.000 and 4,192.000, forming a clear internal range. This range saw multiple rejections at its upper and lower boundaries, indicating active participation and liquidity accumulation at these levels. The session high of 4,216.000 represents a clear External Range High liquidity grab, a point where buy stops above the consolidation were likely triggered before a swift reversal. Conversely, the low of the session near 4,192.000 acted as the initial internal range low. The most significant development is the decisive bearish breakout below this internal range in the final candles, pushing the price to a current low of 4,198.920. This breakdown suggests a shift in momentum, with sellers now in control, having absorbed the liquidity below the prior range. Liquidity and Order Block Identification Two key liquidity pools are evident. The primary External Range High is pinpointed at 4,216.000, which is a clear premium zone where price spiked to collect buy-side liquidity before reversing. This level now serves as a major resistance and the primary target for any future bullish corrective rally. The Internal Range Low was at 4,192.000, but the breakdown has turned this level into a new resistance a classic case of a "liquidity void" or "fair value gap" created by the fast move downward. The most relevant Bearish Order Block (OB) for the current downtrend is the last bullish candle cluster immediately before the breakdown, located within the internal range around the 4,204.000 - 4,208.000 area. This block of orders, which previously provided support, has now been breached and is expected to act as a strong supply zone for any retracement. The market’s sweep of the internal range low and subsequent continuation confirms that seller liquidity below the range has been captured, paving the way for further downside. Trade Setup: Bearish Continuation The prevailing structure favors a bearish continuation trade following the breakdown. The optimal entry strategy is to wait for a pullback into the Bearish Order Block (4,204.000 - 4,208.000) and the reclaimed internal range low (now resistance) near 4,199.545. This retest of the broken support-turned-resistance offers a high-probability sell opportunity. Entry can be placed at 4,202.000, anticipating a rejection from this confluence zone. A Stop Loss should be positioned safely above the order block and the recent lower high, at 4,210.000, to protect against a false breakdown and a reclaim of the internal range. The primary Target for this trade is the next visible lower support level; however, given the momentum, the focus is on the broader move towards capturing liquidity at newer lows. A more conservative first profit target can be set at 4,190.000, with a secondary objective looking for an extension towards 4,185.000. Risk Management and Concluding Outlook This setup exemplifies a classic "break and retest" scenario within a liquidity-driven market. The trade's risk-reward ratio is favorable, with the stop-loss distance of roughly 8.0 points against a first target profit of 12.0 points. It is crucial to manage the position actively, as 5-minute charts can produce noise. A close above the order block (above 4,208.000) would invalidate the immediate bearish premise and suggest a potential liquidity fill back towards the external high. The current chart indicates that sellers are dominant, having successfully taken out key liquidity levels. The path of least resistance is now down, with any upward retracement likely to be sold into until proven otherwise by a clear bullish reversal structure. Traders should monitor price action around the identified order block for confirmation of rejection through bearish candlestick patterns before committing to the short position.