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Gold rebounded strongly on Friday, recovering from an earlier sell-off and rising to $5,170 levels.
Oil prices rose mainly on safe-haven demand amid escalating geopolitical tensions in the Middle East, but gains remained cautious as traders continued to assess inflation expectations and upcoming non-farm payrolls data.
On the second half time frame, price is currently forming a squeeze/triangle structure, indicating that the market is building liquidity ahead of the next big move.
This structure often appears before market volatility expands.
🔍Market structure
Gold is currently trading within a pressure range, with prices being affected by both upward support and horizontal resistance.
Critical levels to monitor:
support area
5087 – 5138
resistance zone
5200 – 5280
Primary liquidity targets are as stated above
5321
📈 Bullish Scenario – Big Move Up
If gold holds support at 5138-5087 and successfully breaks through 5200, bullish momentum could push the market towards:
5280
5321
This could act as a liquidity pull towards the top, especially if safe-haven demand continues to increase.
📉 Bearish scenario – massive sell-off
However, if the winter sweeps liquidity above 5280 – 5321 and shows strong rejection, it may indicate a typical liquidity drawdown before a larger downside move.
In this case, gold may return to:
5200
Penetration 5138
Trigger could trigger a big selloff around 5000-4950
⚠️ Why non-farm payrolls data is important
The nonfarm payrolls week typically produces:
• False breakout
• Withdraw liquidity
• Sudden volatility expansion
This means that the initial move after a news release is not always the true trend.
The reaction around 5200 – 5320 points may determine the true trend next week.
🔥 Trader Questions:
Do you think this is the beginning of a big rally for gold?
Or just withdrawing liquidity before a massive sell-off following the NFP release?
👇 Share your opinions in the comments.
