Saad Ullah
⬤ Gold's been hovering near its recent peaks, but it's not breaking out just yet. The 2-hour chart shows XAU/USD stuck below the $4640 ceiling—that's the highest point from the current rally. Price keeps making lower highs while support zones stay intact, leaving things balanced for now without a clear winner between bulls and bears.
⬤ Every time gold tries pushing past $4639-$4640, it gets knocked back down. But here's the thing—downside attempts haven't managed to crack $4600 either. This squeeze is creating tighter and tighter price swings, basically compressing the action between converging lines. It's not a reversal signal, just gold catching its breath after a solid run higher. Momentum's cooling off but hasn't flipped yet.
⬤ Looking at potential drop zones, there are three clear support levels worth watching. First line of defense sits around $4575, then $4550 below that, with broader structural support down near $4500. Gold hasn't tested any of these yet, but they mark the boundaries if sellers start taking control. The fact that $4600 keeps holding while $4640 keeps rejecting tells you gold's range-bound right now, not trending.
⬤ Why does this matter? Because when gold consolidates near highs like this, volatility usually expands afterward. The standoff between $4640 resistance and $4600 support is setting up the next move. Whichever level breaks first will likely dictate where gold heads next, especially as we move toward the weekend when liquidity can get choppy.
Saad Ullah
