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Gold continues to trade within a dominant bullish structure on the first half hourly chart. Prices are consolidating after a strong expansion following structural changes earlier this week.
Market background
The need for safe harbors is back on the table after Donald Trump suggested Iran could lay mines in the Strait of Hormuz. Such geopolitical headlines tend to increase uncertainty and risk in energy markets, temporarily supporting gold prices.
Meanwhile, price is already at the top of its recent range, which means liquidity above it remains an important area to monitor.
Current annotation
On the H1 structure, the price completed a clear characteristic change (ChoCH), followed by a structural breakout (BOS) to the upside.
Thereafter, gold respected the uptrend line and continued to form higher highs and lower highs. However, momentum has slowed somewhat recently as the price approaches the prominent area of ​​previous highs and liquidity pools.
This creates a situation where persistence and regression to the mean are possible in the short term.
Key trading areas
🟥Liquidity selling area
Entries: 5265 – 5267
Cancellation: 5275
Liquidity in this area is close to premium, above the current range, and stop-loss and late-payment buyers are likely to congregate here. If price fluctuates around this area, it could result in a temporary withdrawal of liquidity before a correction.
🟩Liquidity buying area
Entries: 5172 – 5170
Cancellation: 5162
This level is consistent with previous structural support and the uptrend line area. A move back into this area would see a discount into the current bullish structure that buyers entered previously.
future awareness
Traders may focus on whether price first seeks liquidity above the highs, or rolls downward to rebalance toward inefficiency near trendline support.
Geopolitical headlines related to Iran and the Strait of Hormuz could also cause volatility to spike, temporarily distorting technical levels.
Conclusion
For now, the structure remains constructive, but prices are approaching common liquidity response areas. The next move could reveal whether buyers are ready to hold on, or whether the market needs a deeper correction first.
Do you think gold will attract liquidity first at 5265, or will demand be revisited at 5170 and then continue?
