FX.co ★ Farazkhan | XAU/USD, GOLD

XAUUSD Technical Analysis of the gold Market Trend and Trade Setup Global impact: Elevated gold prices near $4,400 per ounce in early 2026 reflect persistent geopolitical tensions, anticipated Federal Reserve rate cuts, and robust central bank purchases. These factors bolster golds safe-haven appeal, signaling investor caution amid global uncertainties, potential inflation risks, and currency debasement concerns, while supporting diversification in portfolios worldwide. Time Frame: 15 Minute

Chart Analysis The provided 15-minute chart of Gold Spot versus U.S. Dollar (XAUUSD) illustrates a robust bullish structure from December 30, 2025, to January 5, 2026, aligning with Inner Circle Trader (ICT) principles, Smart Money Concepts (SMC), and price action dynamics. Commencing from a lower low (LL) near 4,230, the price establishes a higher low (HL) around 4,310, signaling initial accumulation by smart money institutions. This is followed by a break of structure (BOS) upward, breaching prior resistance, which invalidates bearish order flow and confirms a shift to bullish bias. Price action reveals impulsive advances with strong green candles, forming higher highs (HH) at approximately 4,440, interspersed with corrective pullbacks that respect fair value gaps (FVGs) and order blocks (OBs). Notable liquidity sweeps occur at lower highs (LH) and HLs, where retail stops are hunted before reversals, a classic SMC manipulation tactic. The charts volume profile supports this, with increased activity during BOS events, indicating institutional participation. Recent price consolidation above 4,350 suggests a re-accumulation phase, with the latest candle closing bullishly at 4,399, respecting the ascending trendline and displacing prior supply zones efficiently. In ICT terms, the market exhibits premium pricing above the daily central pivot, with potential for further displacement toward external range liquidity. However, overextension risks emerge near the HH, warranting caution for inducements. Trade Setup: Direction: Long (Buy). Entry: Above 4,400 on confirmed BOS, targeting FVG fill. Stop Loss: Below recent HL at 4,350 (risk 50 pips). Take Profit: Next HH near 4,450 (1:2 R:R), or trail to 4,500 on momentum. Rationale: Bullish structure intact; avoid if price breaks below 4,310. Position size: 0.5% account risk.