Gold Consolidates Below Record Highs With Bulls Eyeing Key Liquidity Zone

Gold continues to hold firm near $4,140, consolidating just below recent highs after an impulsive breakout.

Institutional price action suggests the metal is currently undergoing a controlled retracement phase within its broader bullish expansion — a textbook setup for re-accumulation before the next drive toward external liquidity above $4,180.

4H Anchor Context — Structure and Bias

• Trend Structure: Bullish (series of higher highs and higher lows).
• Active Range: $4,085 – $4,190 (Equilibrium ≈ $4,137).
• Market Phase: Retracement phase after a displacement-led expansion.
• Bias: Long positions favored within discount arrays below EQ; short-term liquidity sweeps likely in premium above $4,170.

The 4H chart identifies two active POIs:

• A continuation demand near $4,115–$4,130 (fresh, unmitigated).
• A supply trap around $4,165–$4,175 (potential liquidity sweep).

These POIs serve as anchors for 1H refinement and entry execution.

1H Execution Refinement — Precision Zones

Priority 1 Buy Zone – “Golden Zone of the Day”

• Refined Range: $4,118 – $4,128
• Type: Continuation Demand (1H refined from 4H OB)
• Confluence Score: 6

Rationale:

1. 4H continuation OB refined to a nested 1H OB within open FVG.

2. Aligns with the 61.8–78.6 % OTE retracement of the recent 1H impulsive leg.

3. Liquidity sweep below $4,130 acts as inducement for smart money re-entry.

4. Strong displacement candle confirms institutional origin.

5. Round-level magnet ($4,120) offers defense alignment.

6. Volume confirmation favors expansion post-manipulation.

Execution Plan: Wait for 1H CHoCH + bullish engulf confirmation within zone.

Stop Loss: $4,108

Targets: $4,168 / $4,218 / $4,268 / $4,318 / Open.

Priority 2 Buy Zone – “EQ Rebalance Pocket”

• Range: $4,090 – $4,100
• Confluence Score: 5

A refined 1H OB and partial FVG overlap sit at 4H equilibrium.

This mid-range liquidity pocket acts as a secondary buy area if the Golden Zone fails.

Stop Loss: $4,080 | Targets: standard ladder.

Priority 3 Sell Zone – “Liquidity Sweep Resistance”

• Range: $4,165 – $4,175
• Confluence Score: 4

Above $4,160 lies equal highs with resting buy-side liquidity.

A 1H supply OB + Inversion FVG creates a potential reversal zone for short-term scalps.

Stop Loss: $4,182 | Targets: $4,150 → $4,125 → $4,105.

Priority 4 Buy Zone – “Deep Discount Defense”

• Range: $4,062 – $4,070
• Confluence Score: 4

A fresh unmitigated 1H OB forms near the base of the 4H discount range.

This serves as the final defense zone before a structural invalidation occurs.

Stop Loss: $4,050.

Session and Correlation Outlook

• Asia: Building internal liquidity above $4,145.
• London Killzone: Potential liquidity sweep into $4,118–$4,128 for institutional re-entry.
• New York: Expansion expected toward external liquidity near $4,175–$4,190.

Cross-Market Alignment

The combination of weak DXY and steady yields keeps gold’s higher timeframe narrative intact.

Institutional Summary

Gold remains in a retracement-to-continuation sequence with high-probability demand zones between $4,118–$4,128 and $4,090–$4,100.

The Golden Zone ($4,118–$4,128) provides the most technically aligned re-entry setup — a 1H OB + FVG + OTE cluster perfectly nested in 4H continuation demand.

A confirmed defense here should lead to expansion above $4,175, targeting $4,218 and beyond.

Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice. Trading gold carries risk; only use capital you can afford to lose and confirm setups independently.