⬤ Gold is testing a critical resistance zone as price consolidates below recent peaks. XAU/USD could see a strong move Monday if the daily candle closes above the most recent bearish candle—a signal that would confirm buyers are in control and ready to push higher.
⬤ The daily chart shows XAU/USD bouncing back after hitting downside liquidity levels and climbing into the $4,900 to $5,000 range. Price is now pushing against the last down-close area, which is acting as resistance. A clean close above this level would show that buyers have absorbed supply and shifted the short-term trend bullish.
⬤ Once the breakout happens, traders expect a pullback into the former resistance zone to retest it as support. This retracement would confirm the level is holding before the next move up. After that, the target is the liquidity sitting above the previous all-time high.
⬤ This setup follows a textbook continuation pattern: breakout, retest, then expansion. If price holds above the reclaimed zone, the path toward new highs stays open. If it gets rejected, the rally could stall and delay any attempt at fresh records.
