Alex Dudov
⬤ Gold prices (XAU) kicked off the session with serious momentum, gapping higher right from the open and pushing straight into new local highs near 4,690. The move was sharp and clean—price broke above recent ranges and accelerated fast before the momentum started cooling off.
⬤ Once gold touched that 4,690 area, sellers stepped in and pushed it back down. The pullback brought price into the mid-4,660s, where it's currently trading. That retracement has partially filled the opening gap, which is pretty normal after a big gap-driven move. The way the candles are behaving suggests this is controlled profit-taking rather than any kind of aggressive reversal.
⬤ From a technical standpoint, there's a former resistance zone sitting between roughly 4,644 and 4,634 that traders are now watching as potential support. This area lines up with previous structural highs where buyers had trouble breaking through before. The current pullback looks like it might be heading straight for this zone—pretty typical behavior after a gap higher like we saw today.
⬤ This setup matters because how gold handles former resistance-turned-support often determines whether the short-term trend stays intact. If price stabilizes above that 4,644 to 4,634 zone, the recent bullish momentum stays alive and keeps focus on the upper range. But if it slips below, we could see more volatility and a longer consolidation phase. How gold reacts around this zone will likely set the tone for near-term direction and market sentiment.
Alex Dudov
