Gold Spot / U.S. Dollar
Long
Updated

Gold Is Preparing for a Reversal — Only Smart Money Will

155
📌 1. Market Structure
Gold is currently forming a bullish market structure on higher timeframes, with clear sequences of:
- HH (Higher Highs)
- HL (Higher Lows)
The recent drop created a series of LL & LH patterns, but this occurs inside a falling wedge, which typically appears as a bullish correction phase before a strong continuation upward.
The wedge + liquidity sweep + key HL zone indicates a potential trend continuation.

📌 2. Key Zones
Major Support Zone: 4163 – 4170
This is the large liquidity zone where price previously formed HL + BOS.
Price is now dipping back into this zone — ideal for liquidity collection.

Upper Resistance Target: 4230 – 4265
This is where previous HH formed and where price may extend after breaking the wedge.

📌 3. Price Action
- Price broke structure (ChoCh) during the drop, but this move is corrective, not reversal.
- The wedge is compressing with lower volatility and higher rejection wicks.
- Sellers are losing strength; buyers are absorbing entries near the HL liquidity zone.
- Current projection shows a possible V-shaped reversal or a slower corrective retest bounce, both converging to bullish continuation.

This matches your yellow & green projection lines.

📌 4. Technical Confirmation
-Falling Wedge: A classic bullish reversal pattern.
-Liquidity Sweep: Price wicked below the previous LL, grabbing liquidity for buyers.
-BOS signals: Multiple Break-of-Structure points confirm prior bullish intent.
-Rejection at Support: Strong wick rejections inside the wedge base show institutional buying.
-Fib Confluence (if applied): 0.618–0.705 zone aligns perfectly with the current rebound.

All technicals suggest a bullish reversal is highly probable.

📌 5. Trading Plan
🎯 BUY Setup
Entry Zone: 4165 – 4175 (at wedge bottom / liquidity zone)
Stop-Loss: 4148 (below liquidity sweep & wedge invalidation)
Take Profit 1: 4210 (first structure break)
Take Profit 2: 4235
Final Target: 4260 – 4265 (previous HH)

Why this setup works:
You’re entering at the end of a liquidity sweep, inside a falling wedge, at a major HL zone, with BOS support behind you.
This is exactly where institutions enter not retail traders.
Trade active
snapshot
GOLD Bullish Outlook — Strong Macro Foundations Support Further Upside
Gold continues to hold a solid bullish structure, and the broader macro environment is aligning to push prices higher in the coming sessions. Despite short-term consolidation, the underlying forces driving gold remain undeniably strong.

🌍 1. Global Uncertainty Fuels Safe-Haven Demand
With geopolitical tensions, unstable global markets, and concerns about economic slowdowns, investors are shifting toward safer assets. Gold remains the top destination when fear rises, giving it a natural bullish bias.

💵 2. Fed Rate-Cut Expectations Strengthen Gold
Markets are increasingly pricing in Federal Reserve rate cuts, which means:
- Lower bond yields
- Weaker USD
- Higher liquidity
All of these are powerful catalysts pushing gold higher. A softening dollar alone is enough to support a strong uptrend.

3. Volatility in Japan’s Bond Market (JGB) Adds More Demand
Recent jumps in the 20-year JGB yields shocked global markets, creating uncertainty in fixed-income assets. When bond markets become unstable, investors move capital into more stable stores of value and gold benefits directly from this shift.

🏦 4. Central Banks Are Still Accumulating Gold
A strong wave of central-bank gold buying continues globally. These long-term flows create a solid floor under gold’s price and support the bullish trend.

📈 5. Technical Structure Aligns With Fundamentals
Gold is currently moving within a controlled ascending structure, forming higher lows and consolidating before a potential breakout.
This kind of accumulation usually leads to a strong upward expansion when fundamentals are supportive — which they are.

🔺 Bottom Line
All major macro drivers Fed policy, USD weakness, global risk sentiment, JGB volatility, and central-bank demand continue to point toward a sustained bullish outlook for gold.
As long as gold respects its support zones, the market remains positioned for a powerful breakout to new highs.

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