FX.co ★ Konnect2fx | XAU/USD, GOLD

Gold (XAU/USD) 4-Hour Chart Analysis The Gold 4-hour chart is showing signs of recovery after a strong bearish move earlier in the month. Price recently bounced from the area near the PWL (Previous Week Low) around 4011 and created a sharp upward reaction, which suggests that buyers are defending this support zone. The chart also highlights an important Order Block (OB) between approximately 4040 and 4100, where demand appears to be building. I can see that after the strong rally from the lows, Gold filled the marked GAP and pushed toward the PWH (Previous Week High) area near 4367. However, the market failed to maintain strength above that level and experienced another wave of selling pressure. Despite this pullback, the current price action remains above the major support region, indicating that buyers have not completely lost control. The liquidity zones marked on the chart suggest that large market participants may still be targeting higher prices before any major bearish continuation develops. I believe the recent decline looks more like a correction within a broader recovery attempt rather than the beginning of a new strong downtrend. As long as the price remains above the highlighted order block, buyers may continue looking for opportunities to push the market higher. Looking ahead, the key area to watch is the support zone around 4040–4117. If buyers continue defending this region, Gold could attempt another move toward 4300 and eventually retest the PWH resistance around 4367. I think a successful break above that resistance would expose the liquidity area near 4490, which is marked on the chart as a potential upside target. From a technical perspective, the recent rejection from higher levels has increased short-term volatility, but the overall structure still allows room for bullish continuation. I would pay close attention to candle behavior inside the order block because strong bullish candles from this area could confirm renewed buying interest. On the fundamental side, Gold remains sensitive to expectations surrounding U.S. interest rates, inflation data, and global economic uncertainty. When investors become concerned about economic growth or geopolitical tensions, Gold often benefits from safe-haven demand. At the same time, a stronger U.S. dollar or rising bond yields can create pressure on precious metals. Overall, the chart suggests that Gold is currently testing an important demand zone. If support continues to hold, I expect buyers to target higher liquidity levels, while a decisive break below the order block could shift momentum back in favor of sellers and open the door for a deeper decline toward the previous weekly low.

XAU/USD Technical Analysis: XAU/USD is trading near 4013.95 on the 1H chart and the broader structure remains bearish despite the recent recovery from the 3970 area. Price continues to trade below the descending trendline, showing that sellers still have control of the market. I can see that multiple BOS signals on both 2H and 1H timeframes confirmed the downside structure earlier, while the recent bounce appears to be a corrective move rather than a complete trend reversal. The market reacted strongly after the sharp decline from the 4090-4100 region and is now attempting to retrace toward the marked OB+FVG area. This zone between approximately 4050 and 4095 is acting as a key decision area where liquidity is likely concentrated. The chart also highlights LIQ and ILL levels above current price, suggesting that a short-term push higher cannot be ruled out before the next directional move develops. Volume increased significantly during the selloff, indicating strong participation from sellers, while the current recovery is taking place with relatively controlled momentum. I think buyers may continue pushing toward 4040, 4060 and potentially 4080 if short-term strength remains intact, but the overall structure still favors caution while price remains below the descending trendline.

Looking ahead, the highlighted purple zone remains the most important area on the chart. I would closely watch how price behaves if it reaches the OB+FVG region because that area aligns with previous reaction levels and trendline resistance. A rejection from 4050-4095 could attract fresh selling pressure and support the bearish path projected on the chart. In that scenario, XAU/USD may revisit 4000 first, followed by 3970 and potentially 3920 if downside momentum accelerates. The bearish projection also suggests that liquidity could be collected inside the marked zone before sellers attempt another move lower. However, if buyers manage to secure a strong close above 4095 and break the descending trendline, the current bearish outlook would weaken and a deeper recovery could develop. I believe confirmation inside the highlighted zone will be critical because the market is approaching an area where both buyers and sellers are likely to become active. For now, the sequence of BOS signals, the position beneath trendline resistance, and the structure around the OB+FVG area continue to support a bearish bias. I remain focused on price action around the marked zone because that reaction is likely to determine whether XAU/USD resumes the broader decline or extends the corrective recovery before the next major move unfolds.