FX.co ★ XAU/USD, GOLD

On the M5 XAUUSD chart, the price is trading around 4398.64 bids at 07:50 on 12th Aug, printing a strong impulsive continuation after a deep corrective cycle. This is a completely different structure from the view — we are now at an all-time-high for Gold. The chart shows a clear V-shaped recovery. On 11th Aug around 18:55, the price topped near 4398.80 and collapsed aggressively to 4360.30 around 23:30. That flush was followed by choppy bottom formation between 4360–4372 from late 11th Aug to 02:00 on 12th Aug. This was accumulation — buyers absorbing supply with long lower wicks and overlapping red candles. From 03:00 onwards, demand took full control. A steep bullish leg launched from 4362 to 4378, then a minor pullback to 4362 again around 04:20, creating a higher low. After that, Gold entered a vertical rally: 4368 → 4382 → 4393 → 4398.90. The current candle is pressing the dashed high at 4398.80, which is now acting as immediate intraday resistance. This is a classic buy-side continuation with almost no deep embracement — every pullback is 4–6 USD only before the continuation. Market / Gulf Session Context: The current rally is unfolding in the early Gulf + Asian overlap. The 05:20 to 07:50 candles are all Gulf session candles, and they are strongly trending on the bullish side. Gulf buying is dominant — large blue impulsive bodies with shallow wicks indicate institutional buy flow into London open. As long as Gulf demand holds above 4390, intraday bias stays bullish for London continuation. Trend & Candle Structure on M5: The trend has flipped from bearish to strongly bullish. We have higher highs: 4377 → 4382 → 4393 → 4398.9 and higher lows: 4362 → 4364 → 4370 → 4378. No bearish market structure break yet. Candle bodies are expanding on the upside, showing momentum acceleration. RSI (14,70,30) Reading: RSI is at 75.87 — deeply overbought. This is the third overbought push in this rally. Earlier, the RSI peaked near 65 around 01:30 and reset to 32 near the bottom. Now the RSI is holding above 60 since 05:20 and tapping 75+. This signals extreme bullish momentum but also exhaustion risk. A hold above 68–70 keeps the trend intact, while a drop below 62 would signal the first M5 bearish divergence and potential consolidation. Key Levels on M5: Immediate Resistance: 4398.90–4400.00 psychological high. The break above opens at 4405 and 4415. Immediate Support: 4392.0–4387.0 last breakout base. Deeper support is 4382.0–4378.0 and then 4370.0 major demand. Scenarios: Bullish Continuation: Favored while above 4390. Buy pullbacks to 4392-4390 with bullish engulfing for move to 4400, then 4408. Bearish Rejection: Only the M5 closes below 4387, with the RSI below 62 would trigger a deeper pullback to 4378 and 4370. Trade Plan: Intraday buy-the-dip only. Buy limit 4392-4390, SL below 4386, TP1 4399, TP2 4406. Aggressive breakout buy stop at 4400.10 for momentum. No shorts until 4387 breaks.