When analyzing the weekly trend of gold prices, we note that the overall trend remains bullish, with higher peaks and troughs gradually forming, which reflects the continuation of positive momentum in the medium to long term. However, bull markets often do not run in a straight line, but go through phases of correction and liquidity accumulation before completing the trend.

On the current chart, an important level appears near 5300 – 5350, which is an area where multiple technical factors converge in the same place, making it a liquidity area that affects price action.

firsta price gap formed during the recent uptrend, and price often returned to test these areas before completing the move.
secondThis level represents an area of ​​historical support and resistance as the previous several candles rested at this level, indicating significant interest among market participants.
thirdRepeated testing in the same area indicates a large accumulation of buy and sell orders, which is known in the market as a liquidity area.

The market typically absorbs liquidity in these areas before the price expansion phase begins, which is a period of rapid price movement after the consolidation phase ends.

Therefore, the most likely scenario is that if the price manages to stabilize above the liquidity zone, the volatility or correction will continue within the designated zone (red box) before the price starts a new upward wave.

If gold prices hold above the 5300 range and continue to build a strong price base, we may see the upward trend gradually extend to higher levels, such as 5600 and 6000, with the possibility of targeting further areas in the medium term, possibly reaching 6500 – 7000, if buying momentum continues.

However, it is important to keep an eye on the 5,000 level on a weekly basis as it represents important structural support to the upside. A weekly close above this level could open the way for a further correction towards 4800-4700 points before any fresh upside attempt.

The conclusion is that the market is still in a long-term uptrend, but the current move may represent a pullback and liquidity accumulation phase before the trend resumes to higher levels on the next trading day.

Gold remains one of the assets most affected by global economic factors such as inflation, interest rate policy and geopolitical tensions, making monitoring these factors important to understand its movements.

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