With gold longs liquidated in October, is it time for the next leg up? Or do gold bears have other intentions?
Watch today’s video for the key levels to watch, including the bullish trigger in November, and a must-hold weekly level. Plus, get the latest on the US dollar (DXY) to assist with any gold entries.
What happened
Gold pulled back after a strong rally, and the market’s now sitting in the middle of its recent range.
We observed liquidation from trapped longs in October, resulting in single prints (imbalances) ranging from $4,165 to $4,314.
Currently, XAUUSD is holding below $4,030–$4,060 and trading below the November open. That leaves recent lows at $3,930 vulnerable.
Why it matters
Being below the monthly open doesn’t make gold bearish by itself. Markets often trade one side of the open early in the month before flipping.
However, as long as gold remains capped under the $4,030–$4,060 zone, it favors more chop or a sweep of the lows before any move higher.
Key levels
Immediate resistance lies at $4,030–$4,060, followed by the single prints between $4,165 and $4,314.
Support comes in at $3,930 and $3,900.
A weekly close below $3,940 would turn that area into resistance and flip the bias lower.
If/then scenarios
If gold closes back above the November open and $4,060, it flips that zone to support, opening the way to fill imbalances between $4,165 and $4,314.
If it stays below, there’s risk of a sweep of $3,930 or even a deeper pullback into $3,900.
On the flip side, the DXY continues to grind higher from its 2011 channel support.
If the dollar pushes into the 100.60–100.80 resistance area, that could pressure gold in the short term. A rejection there would support the bullish case for XAUUSD.
What I’m watching
I’m watching for a bullish reclaim of $4,060 or a sweep of $3,930 for confirmation.
Above $4,060 = bullish continuation toward $4,165 and higher.
Lose $3,940 on a weekly closing basis = bearish shift toward $3,768.
What are you watching on gold this week?
