FX.co ★ XAU/USD, GOLD

Market Structure Analysis The XAU/USD 1-hour chart from November 25 to December 5, 2025, reveals a dynamic shift in market sentiment marked by multiple Market Structure Shifts (MSS) and Breaks of Structure (BOS). Initially, the price action demonstrated a bullish trend, confirmed by green BOS levels breaking previous highs and supported by rising volume. However, a red MSS near the peak around 4,280 signaled a potential reversal, followed by a red BOS that confirmed bearish intent. This transition was accompanied by a noticeable Liquidity Void, indicating a sharp drop with minimal retracement—a sign of aggressive selling and low buyer interest in that zone. The price then consolidated below the 4,200 level, forming lower highs and lower lows, which further validated the bearish structure. Volume analysis shows a spike during the breakdown, suggesting institutional participation. The current price at 4,196.105, with a slight intraday decline, reflects indecision as traders await confirmation of either a continuation or reversal.

Trade Setup and Strategy Given the recent bearish BOS and the presence of a Liquidity Void, a short-term bearish bias is favored. Traders could consider a short position if price retests the 4,204–4,210 resistance zone, which aligns with the previous support turned resistance and the upper boundary of the liquidity gap. A stop-loss can be placed just above the recent swing high at 4,215 to protect against false breakouts. The initial target could be set around 4,180, where previous demand emerged, and a secondary target near 4,160 if bearish momentum continues. Alternatively, if price breaks above 4,215 with strong volume and closes above the MSS zone, it may invalidate the bearish setup, signaling a potential bullish reversal. In that case, traders should wait for a bullish BOS and consider long entries targeting 4,240 and 4,260. Risk management is crucial, especially in volatile conditions like those shown on this chart. Monitoring volume spikes and price behavior around key levels will help refine entries and exits for optimal trade execution.