(XAUUSD) – Demand Zone Anticipation and Potential Bullish

On the 4-hour chart of Gold (XAUUSD), the price action is approaching a key decision point. After forming a lower high structure, price is pulling back from recent highs and heading towards a well-established demand zone around the 3,175 area.

This zone previously acted as a strong support region, producing significant bullish reactions. A re-entry into this demand area could potentially provide a high-probability buying opportunity, especially if price forms bullish confirmation patterns like engulfing candles or a double bottom.

The green highlighted area indicates a possible long target towards the 3,500 level, assuming the price respects the demand and resumes its bullish trend. The key to this setup is price behavior near the pink support area — a clean rejection can open room for a long trade with strong risk-to-reward potential.

Key Levels:

Demand Zone (Buy Area): 3,150 – 3,175

Current Resistance: 3,300

Bullish Target: 3,500

Invalidation (Stop-Loss Zone): Below 3,100


Trading Strategy:

Wait for price to enter the 3,150–3,175 support zone.

Monitor for bullish confirmation before entering a long position.

Consider placing stop-loss below 3,100 to protect against false breakouts.

Long-term target remains at 3,500 if the bullish structure holds.


Note: This analysis is based purely on technical price action. Always consider macroeconomic news and gold fundamentals (such as interest rates, USD strength, and geopolitical events) for comprehensive decision-making.