Gold’s Golden Reaction — Respecting the 4H FVG Like a Pro

Gold is showing a classic ICT-aligned reaction after tapping into a clean 4H Fair Value Gap (FVG), which acted as a high-probability point of interest (POI). The rejection wick and immediate bullish reaction suggest algorithmic interest has returned, hinting at a potential short-term bullish continuation.

🧠 Key Confluences:
✅ 4H FVG respected cleanly — often signals institutional accumulation when coupled with high volume and immediate pushback.

✅ COT Report Overlay: Institutional longs on gold outweigh shorts significantly (81% long), while retail is skewed bearish (69% short). This adds confidence to the long-side thesis — smart money likely pushing the upside.

✅ Price displacing higher after sweep of local liquidity — textbook liquidity grab before directional move.

🎯 Targets:
First Buyside Liquidity: 3,366.95 — this is the initial level where we may see some profit taking and possible rejection.

Second Buyside Liquidity: 3,433.85 — high-timeframe clean highs likely resting with unmitigated orders, making this a strong target.

However, due to the impulsive nature of gold, a retracement or pullback from the first target is very likely before continuation to the next liquidity level. This could present a second entry opportunity if the FVG zone holds support again.

⚠️ Risk Note:
A break and close below the FVG invalidates the bullish bias and could push price toward the prior sell-side zone near 3,257 or lower.