Gold Context: Failed Breakdown & Structure Resilience

GC1! MGCG2026 XAUUSD

Traders. Update on the opening flows of the week.

Market Context (The Defense): Yesterday, the auction probed slightly below Friday's low, but failed to find acceptance or continuation.

The Reaction: Instead of triggering a broader liquidation break, we saw immediate short covering.

Key Observation: The market barely tested Thursday's low. This inability to extend lower and "repair" the structure indicates a lack of aggressive selling interest.

Structure & Outlook: I do not view this price action as a sign of weakness. On the contrary, the rejection of lower prices suggests responsive buying is present.

The Expectation: We are looking for this initial short covering to transition into New Money (OTF) buying.

The Confirmation: If "New Money" steps in above the current balance, it validates the resilience we saw yesterday and should drive the auction higher.

Plan & Execution:

Bias: Constructive / Looking for upside rotation.

Focus: Monitoring the transition from mechanical short covering to genuine initiative buying.

Talk to you for the next update.