Gold analysis Gold (XAU/USD) Technical Analysis
Date: July 28, 2025
Market Context
Gold (XAU/USD) is currently trading at $3,313.01, showing a modest gain of +0.32% on the day. From a Smart Money Concepts (SMC) perspective, price action is now positioned at a high-probability demand zone, presenting an attractive opportunity for long positions.
Key Technical Observations
Liquidity Grab at $3,308
Price has recently swept the liquidity resting below $3,308, indicating the possible completion of a stop-hunt move orchestrated by institutional players. This move created an ideal setup for a bullish reversal from a zone where weak longs have been shaken out.
Discounted Price Zone (89% Fibonacci)
The market has retraced deeply into a discounted region, reaching the 89% Fibonacci retracement level of the most recent bullish leg. This zone coincides with a previously identified demand block, enhancing the confluence for potential bullish continuation.
Market Structure & Order Blocks
The current structure shows a bullish intent with price revisiting a bullish order block that previously led to a strong rally. The reaction from this block is key—holding above $3,300 would confirm buyers stepping in with conviction.
Internal Liquidity Void (Imbalance)
A visible inefficiency (price imbalance) exists between $3,345 and $3,398, acting as a magnet for price in the short-to-mid term. This inefficiency aligns perfectly with SMC principles that favor price filling these voids.
Bullish Targets
If price holds and confirms bullish intent from the current zone, we expect a move toward the following key levels:
Target 1: $3,345
This is the midpoint of a previous consolidation range and also lies just above the 50% Fibonacci level.
It also aligns with a minor supply area and could serve as a first TP level.
Target 2: $3,398
This is the upper bound of a key supply zone that previously initiated a strong sell-off.
It coincides with the 0.00% Fib retracement, marking the origin of the most recent bearish leg.
