Gold is exploring liquidity below 4560 as 4707 sell zone hampers recovery

Gold is showing fresh short-term weakness on the hourly chart as price remains well below the 4707 sell zone. As technical pressure increases and prices move away from upper territory, the market is shifting to a more cautious and corrective structure, focusing on lower liquidity pools.

Market background
From a technical perspective, gold prices are weakening after failing to regain the high volume area around 4707. This area is clearly marked on the chart as the Point of Control (POC) for the primary sell area, and it is even more important from a volume perspective as it represents the highest volume level in the recent range.

Prices have been trading significantly below this area for several consecutive sessions, with recent moves suggesting market participants would rather move lower than chase higher prices. The failure of POC to sustain any recovery confirms that supply remains active at elevated levels.

Technical structure
The current chart structure highlights that the market is losing momentum as it moves away from strong support at 4658. Following a break above previous support, this area has emerged as a technical hurdle hindering immediate upward momentum.

Prices are now putting pressure on the 4541 liquid buy zone, which is becoming a key area where buyers have previously attempted to react. What matters here is the interaction with the descending trendline: the market is squeezed between overhead pressure and the current liquidity ceiling.

The volume profile data supports this downward rotation, as there is a clear downward shift in “value”. The rejection of control point 4707 appears to be more of a continued pressure on a broader corrective move towards deeper support areas.

critical level
Sell ​​Zone/POC Resistance Level: 4707

Early support/resistance: 4658

Near-term liquidity support: 4560

Main Buy Zone Liquidity: 4541

Scenarios and Forecasts
The preferred scenario remains a downward spin unless gold prices can rebound and hold above intermediate resistance.

As long as the price remains below the 4658 level, the market is likely to continue trading with a heavy tone extending towards the 4541 buy zone. This area is considered the next key level where institutional buyers may attempt to re-engage, which could cause a “liquidity wipe” before any meaningful rebound can occur.

On the other hand, if gold prices can break above the current downtrend line and return to 4658, then the immediate downward pressure will begin to ease. This will redirect focus to retesting the 4707 control point, requiring a neutral reassessment of the structure in the short term.

in conclusion
Gold is currently in a weaker structure in the short term, with the 4707 sell zone continuing to impede recovery attempts and price heading towards a 4541 liquidity bottom.

The chart shows that sellers still have the upper hand as the market searches for a firm bottom. Barring a decisive re-break of resistance, the market will continue to favor a move first towards 4541, which is the next major reaction area below.

Disclaimer: This analysis is for educational purposes and reflects technology market structure; it is not considered financial advice.

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