Saad Ullah
Gold is holding its bullish structure on the 2-hour chart after pulling back from the $5,350-$5,400 supply zone. Despite the retracement, price action keeps printing higher lows - a sign the broader trend is still intact rather than reversing. This looks like a corrective pause inside an ongoing uptrend, not a structural breakdown. Gold Caught Between Trendline Support and $5,250 Resistance explored a similar setup earlier in this cycle.
$5,150-$5,170 Support Zone Holds the Key
After rejecting the $5,350-$5,400 area, XAU/USD is now consolidating just above the $5,150-$5,170 cluster. This zone lines up with multiple moving averages and prior structural levels, making it a technically meaningful demand area. The market seems to be absorbing liquidity here before deciding on the next move. As also covered in Gold Tests 5,180 Resistance as Hourly Recovery Rally Builds, price behavior around this range has been a key inflection point.
Levels to Watch: $5,000 Floor, $5,400 Ceiling
Near-term support stays between $5,150 and $5,170, with a deeper floor around $5,000-$5,050. On the upside, resistance sits at $5,320-$5,360, extending toward $5,400-$5,450 at the upper supply zone. Holding above $5,150 keeps the bullish case alive and opens another potential run at $5,400. A breakdown below that support, though, would shift focus toward the $5,000 demand area - a scenario also flagged in Gold Bounces From Rising Channel Support at $5,100 as Bulls Defend 1-Month Trend.
The current compression reflects a market caught between lingering bullish momentum and short-term profit-taking after the earlier rally. Consolidation phases like this tend to precede stronger directional moves once liquidity builds around key levels. If support holds, gold may push toward the upper supply zone again. If it doesn't, $5,000 becomes the next line of defense.
Saad Ullah
