Peter Smith
⬤ Gold (XAU/USD) is holding a solid bullish structure on the 2-hour timeframe, respecting higher highs and higher lows even as momentum has cooled. After a sharp rally, gold has settled into consolidation just below a clearly marked weak high resistance area. This price behavior suggests the uptrend is taking a breather rather than reversing, keeping the overall bullish outlook alive while traders wait for the next catalyst.
⬤ The chart displays multiple Break of Structure (BOS) confirmations throughout the recent uptrend, reinforcing how strong the bullish momentum has been. After the latest breakout, price action shifted into a range below the $4,350-$4,360 resistance zone—a weak high and supply area. This consolidation shows the market cooling off after the rally, with price hovering near resistance instead of getting hammered by selling pressure.
⬤ Key support zones are clearly defined and continue backing the trend. Immediate demand sits in the $4,308-$4,320 region, which has held up during recent pullbacks. Below that, the $4,278-$4,280 zone represents important demand and trend support. Deeper support is around $4,235-$4,240, lining up with major structural support and the 200 EMA on the 2-hour chart. As long as price stays above these levels, the bullish structure remains technically solid.
⬤ Price holding above near-term support while consolidating below resistance points to controlled conditions rather than distribution. How the market reacts around these highlighted resistance and demand zones will likely shape the short-term direction and show whether bullish momentum is ready to pick back up.
Peter Smith
