Saad Ullah
⬤ Gold prices are taking a breather after breaking higher earlier in the session. XAU/USD is now hovering around the $4,665–$4,670 range on the 1-hour chart, consolidating near recent highs rather than pushing immediately higher. This sideways action suggests the market might be digesting gains or redistributing before deciding on the next direction.
⬤ The technical setup tells an interesting story. Before the rally, we saw a clear change of character and bullish break that triggered the upside move. Now, price is sitting in what traders call a "premium zone" – basically above old resistance – and there are early signs that the short-term momentum might be cooling off. Multiple liquidity grabs at equal highs happened before the breakout, which is typical behavior before a strong move.
⬤ What's catching attention now is the zone below current prices, sitting roughly between $4,565 and $4,600. This area lines up with earlier consolidation and where buyers stepped in before. There's also some unfilled imbalance down there – essentially gaps in price action that markets often like to revisit. The chart suggests gold might dip back into this demand zone before deciding whether to push higher again or face deeper selling pressure.
⬤ How gold behaves during this consolidation matters. Staying above the breakout keeps the bullish structure alive, but a move back into that demand zone will test whether buyers are still committed. These kinds of post-breakout reactions often set the tone for what comes next in the short term, making the current price action worth watching closely for anyone trading XAU/USD.
Saad Ullah
