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BRIAN XAUUSD – Liquidity map affecting global gold fluctuations
In the second half, XAUUSD still maintains a bullish structure (higher highs, higher lows), but the price enters sensitive territory: primary liquidity is above, while there is a broad area of value/demand below. When price approaches these liquidity pools, volatility often expands as large players tend to “shovel liquidity first and then act later.”
What are the factors currently affecting global gold fluctuations?
Gold tends to move wildly when interest rates and U.S. dollar expectations change. Any information that causes markets to repricing inflation, yields or policy expectations could trigger a liquidity run. From a price action perspective, the impact has very little to do with whether the news is “good or bad” – rather it has to do with which area of liquidity the price is pushed into first, where orders are accommodated, and where the next directional move forms.
Liquidity structure on the chart
1) Seller liquidity is at the top
The sell-side liquidity area above is a natural bull magnet for the current bullish body. If the structure remains intact and the market continues to accept higher prices, prices will typically push higher into bulldozing the area before a meaningful correction occurs.
2) Key sequence/value area
The 4,860-4,910 area is considered a key value/demand support area. If deeper adjustments occur, strong absorption may occur in these areas. If the price returns to this area and stabilizes, the likelihood of forming a bottom and resuming the uptrend becomes higher.
3) Buyer liquidity is at the bottom
The area of buy-side liquidity at the bottom (near the deeper lows) only becomes relevant when the bullish structure is completely broken. If price loses demand territory and fails to regain it, the downside could accelerate when price exceeds thin liquidity conditions.
Trading scenario
Scenario 1: Bullish continuation, liquidity cliff moves higher
Situation: Prices maintain an upward structure without losing the main demand area.
Expectation: Further push above the liquidity cliff, followed by a technical correction.
Scenario 2: Correction to 4,860-4,910, then spin up
Status: Price corrected to 4,860-4,910 and showed significant stability.
Plan: Prioritize waiting for absorption/reversal signals in this area to align with the broader trend.
Scenario 3: Structural damage, deeper downward circulation
Conditions: Price breaks below 4,860–4,910 and gets rejected on retest below.
Expectation: Deeper distribution/correction phase leading to reduced liquidity.
in conclusion
This liquidity chart shows that gold is pulled between two extreme points: if the structure is maintained, there will be an upward cliff for gold prices, reaching the liquidity ceiling; if a correction occurs, the demand area of 4,860-4,910 points will serve as a decision point. When news increases volatility, the market typically taps into these liquidity pools first before confirming the next trend phase.
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