Gold is currently moving in a sideways range on the daily timeframe. Prices have reached a key liquidity zone around the 3350 level, from which liquidity was swept, leading to a corrective bearish move.
At the start of Monday’s session, prices declined sharply and formed a Fair Value Gap (FVG) on the 4-hour chart after reaching the Daily Order Block (DOB), which could potentially act as the weekly low if the following conditions are met:
- A bullish rebound from the daily order block and a confirmed 4H FVG candle closure.
- If this scenario plays out, gold is expected to continue its upward movement.
Today’s sharp intraday drop shows clear signs of price manipulation, a common trait of weekly candle behavior.
Gold Under Watch – Market in Standby Mode
Gold prices this week are influenced by ongoing developments in the trade dispute between the United States and the European Union, particularly after hints that the tariff deadline could be extended from July 9 to August 1.
This delay has temporarily eased pressure on gold, but concerns over the U.S. fiscal deficit, due to massive spending plans, have renewed investor demand for the yellow metal.
Markets are also closely awaiting key economic data this week, most notably the FOMC meeting minutes and U.S. job reports.
The clash between political and fiscal trends leaves gold highly vulnerable to volatility, with uncertainty likely to persist until a final decision on tariffs is made.
Liquidity Levels:
- If the above conditions are met, gold could rise to target the liquidity area around 3365.
The bullish scenario would be invalidated if prices revisit the most recent low formed on the 4-hour timeframe.
