XAU/USD | Short-Term Correction Before The Next Bullish Leg?

Aug 25

By analyzing the #Gold chart on the 6H timeframe, we can see that price once again followed the bullish scenario almost perfectly. Gold extended its rally all the way toward $4697, coming just a few dollars away from the major $4700 level. After reaching this area, sellers stepped in and Gold started correcting, with price dropping toward $4610 so far.

In my view, the broader trend is still bullish, but after such an aggressive rally, I expect a deeper short-term correction before the next major bullish leg begins.

The downside targets I’m watching during this correction are $4580, followed by $4550, then $4523, $4500, and potentially $4483. The $4483 – $4523 area is currently one of the most important demand zones on the chart and the reaction from buyers there will be very important.

There is also a large FVG between $4379 and $4451 created during the recent impulsive rally. I do not necessarily expect it to be filled immediately, but in the medium term I believe this imbalance could become an important magnet for price.

So the scenario is simple: short-term correction first, but the broader structure remains bullish.

After this corrective phase, the major upside targets I’m watching remain $4700, followed by $4800, then $4900, and potentially the psychological $5000 level if bullish momentum continues.

For now, don’t confuse a healthy correction with a complete trend reversal. The bigger picture still favors buyers.

Please support me with your likes and comments to motivate me to share more analysis with you and share your opinion about the possible trend of this chart with me !

Best Regards , Arman Shaban

Aug 26

Trade active

By analyzing the #Gold chart on the 6H timeframe, we can see that after the previous analysis, price pulled back toward the important $4670 supply area and reacted negatively exactly from this zone.

Following that rejection, Gold moved lower again and is currently trading around $4615.

For now, the short-term corrective scenario from the previous analysis remains valid. If sellers maintain control, the next downside targets to monitor are $4580, followed by $4550, then the major $4483 – $4523 demand zone.

A deeper correction could eventually bring the large $4379 – $4451 FVG back into focus as well, especially in the medium term.

The broader structure is still bullish, but for now we need to see whether this rejection from $4670 can develop into the deeper correction we have been waiting for. This analysis will be updated as the market evolves.