Gold is currently showing signs of a potential bullish recovery after a prolonged bearish move. Price formed a strong liquidity sweep near the weak low area, followed by a Change of Character (CHoCH), indicating a possible shift from bearish momentum toward bullish structure.
Demand Zone & Bullish Scenario
Price is holding above the marked demand zone around 4,040–4,083. As long as this zone remains protected, buyers have the opportunity to regain control. A confirmed Break of Structure (BOS) above nearby resistance levels will strengthen the bullish continuation setup.
Upside Targets
If price continues to respect the demand zone and breaks resistance with confirmation:
Target 1: 4,430 area (first liquidity objective)
Target 2: 4,651 area (major resistance/liquidity level)
Target 3: 4,850–4,900 area (strong high liquidity zone)
Invalidation Scenario
A strong breakdown below the 4,040 support level will invalidate the bullish setup. A move below this area may trigger another liquidity hunt toward lower levels before any potential reversal.
SMC Perspective
The current structure suggests:
Liquidity sweep completed near the lows
CHoCH confirmed on the lower structure
Price reacting from demand zone
Next confirmation required: BOS above resistance
The key level to watch is the 4,040 demand area. Holding this zone keeps the bullish scenario valid; losing it shifts the bias back toward bearish continuation.