The Hunt for Liquidity (Correction) Before the Drop

#XAUUSD / #GOLD

GOLD is recovering after Thursday's sharp decline, trading around $4,060 on Friday. This rebound may represent nothing more than a liquidity-building move before the broader downtrend resumes

The U.S. dollar continues to strengthen, while gold remains under selling pressure, reinforcing the prevailing bearish market structure. The broader trend remains firmly bearish.
From a technical perspective, gold continues to face pressure from geopolitical uncertainty and hawkish Federal Reserve expectations. The current recovery appears to be a countertrend correction toward key liquidity zones, potentially building momentum for another decline toward the 4000–3983 support area. The next directional move will largely depend on the U.S. dollar, oil prices, PMI data, and developments surrounding the geopolitical conflict.
Bearish drivers: Stronger hawkish Fed expectations, Rising oil prices, Continued U.S. dollar strength, Profit-taking, Bearish technical structure
Bullish drivers: U.S. dollar weakness triggered by new tariff developments, Geopolitical de-escalation, Weaker-than-expected PMI data

Resistance levels: 4061, 4067, 4109
Support levels: 4021, 4000, 3983

Within the current countertrend correction, gold is testing the first trigger zone at 4061–4067. A short squeeze around this area could trigger another reversal and send price back toward support. However, a deeper correction toward the 4109–4134 liquidity zone before the next bearish leg cannot be ruled out.

This analysis is for informational purposes only and should not be considered investment advice.