XAUUSD is trading around 4,671 after another strong bullish expansion into the upper H2 premium area. The broader structure remains bullish, but price is now extended near the upper trendline and major liquidity zone, increasing the probability of a corrective retracement.
Gold remains fundamentally supported after reaching its highest level in more than three months. A softer U.S. dollar and lower Treasury yields following expanded Treasury bond-buyback plans have helped maintain demand for gold. Gold-backed ETFs also recorded their strongest inflows in ten months. The next major catalysts are U.S. PCE inflation and Fed Chair Kevin Warsh’s Jackson Hole speech, while renewed Iran sanctions remain an additional volatility risk.
Technical View
Gold has maintained a strong sequence of bullish BOS signals and continues to trade inside the broader rising structure.
However, the latest expansion has pushed price directly into the 4,665–4,700 premium / liquidity zone near the upper trendline. This is no longer an attractive area to chase longs.
A liquidity sweep followed by bearish rejection could trigger the corrective path shown on the chart.
The first important downside area is 4,540–4,575. This previous breakout structure may produce the first reaction and temporary rebound.
If sellers continue to control the correction, the main retracement objective sits around 4,455–4,490, where major demand and the final retracement zone align.
The broader bullish trend remains intact while this demand holds.
Key Zones
Current price: 4,671
Sell Priority: 4,665–4,700
Premium / liquidity zone: 4,665–4,705
First retest zone: 4,540–4,575
Major demand / final retracement: 4,455–4,490
H2 measured range support: 4,310.354
Bearish setup invalidation: above 4,710
Trading Plan
Sell Priority: 4,665–4,700
Condition: wait for an H2 liquidity sweep followed by bearish rejection, failed acceptance above premium or lower-high confirmation.
SL: above 4,710
TP1: 4,540–4,575
TP2: 4,500
TP3: 4,455–4,490
Important Note
This is a corrective sell setup inside a strongly bullish H2 structure, not a confirmed bearish trend reversal.
Price may remain volatile inside premium before the retracement begins. Avoid chasing a breakdown after gold has already moved away from the entry area.
Sustained H2 acceptance above 4,710 would weaken the corrective view and suggest bullish expansion is still active.
Final View
Gold remains structurally bullish, but price has reached an extended premium area after a strong expansion. The cleaner short-term plan is to wait for bearish confirmation inside 4,665–4,700 before targeting 4,550 and potentially the major demand zone around 4,455–4,490.
Will gold sweep the premium liquidity first before starting the H2 correction?