XAUUSD H1: Recovery From Weekly Low, Can Buyers Extend Next Week

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XAUUSD H1: Recovery From Weekly Low, Can Buyers Extend Next Week?

Fundamental Analysis

Gold ended the week with a strong recovery attempt after the sharp sell-off into the weekly low area. The market is still sensitive to USD strength, inflation expectations, and cautious risk sentiment, so the recovery has not fully confirmed a major bullish reversal yet.

For next week, the key point is whether buyers can defend the current recovery structure. If price continues to hold above the short-term buy zone, gold may extend higher toward the next liquidity and resistance areas. If the lower support fails, sellers may return quickly.

Weekly Trend Summary

During the past week, gold first continued the bearish movement after the previous BOS structure. Price dropped aggressively from the upper range and reached the weekly low near 4,022.

After sweeping the low, buyers stepped in and created a strong recovery move. This shows that demand appeared from the lower liquidity area, but the overall H1 structure still needs more confirmation before turning fully bullish.

The current rebound is important because price is now holding around the 4,210 area, which is acting as the short-term key level for the next move.

Technical Analysis

On the H1 timeframe, gold is recovering from the weekly low after a strong bearish leg. The current buy zone around 4,210 is holding the short-term structure together.

If buyers continue to defend this zone, the next upside target is the FVG area around 4,340 - 4,350. A clean break above this area could open the way toward the golden low zone near 4,426, then the sellside liquidity area around 4,479.

The lower support area to watch is the buy zone FVG and liquidity around 4,070 - 4,120. If price pulls back into this zone and buyers defend it, the bullish recovery scenario remains valid.

However, if price loses the weekly low near 4,022, the recovery structure becomes invalid and gold may return to the bearish trend.

Key Price Zones

Current price: 4,218

Short-term buy zone: 4,200 - 4,210

Buy zone FVG and liquidity: 4,070 - 4,120

Weekly low: 4,022

FVG resistance zone: 4,340 - 4,350

Golden low zone this week: 4,426

Sellside liquidity: 4,479

Strong high supply zone: 4,560 - 4,590

Bullish invalidation: Below 4,022

Trading Plan

Primary Scenario: Buy From Current Structure

Entry: 4,200 - 4,210 after bullish confirmation

Stop Loss: Below 4,170

Take Profit 1: 4,340 - 4,350

Take Profit 2: 4,426

Take Profit 3: 4,479

Entry Conditions

Price holds above the 4,200 - 4,210 buy zone.
Buyers show clear rejection from this area.
H1 structure continues forming higher lows.
Price should break above the nearest resistance with strength.
Avoid buying if price breaks and holds below 4,170.

Alternative Scenario: Buy From Deeper Liquidity Zone

Entry: 4,070 - 4,120 after bullish confirmation

Stop Loss: Below 4,022

Take Profit 1: 4,210

Take Profit 2: 4,340 - 4,350

Take Profit 3: 4,426

Buy Conditions

Price needs to pull back into the 4,070 - 4,120 liquidity zone and show a strong bullish reaction. A bullish CHOCH on H1 or lower timeframe would make the setup cleaner. If price breaks below 4,022, this buy scenario is no longer valid.

Sell Scenario

Entry: Below 4,022 after confirmed breakdown and retest

Stop Loss: Above 4,070

Take Profit 1: 3,980

Take Profit 2: 3,940

Take Profit 3: 3,900

Sell Conditions

A sell setup becomes valid only if price loses the weekly low at 4,022 and fails to reclaim it. This would confirm that the recovery structure has failed and sellers are regaining control.

Overall View

Gold is showing a strong short-term recovery from the weekly low, but next week still needs confirmation. The 4,200 - 4,210 area is the first key buy zone. If buyers defend it, gold may continue toward 4,340 - 4,350, then 4,426 and 4,479.

The deeper buy zone remains 4,070 - 4,120. As long as price stays above 4,022, the recovery scenario is still valid. If 4,022 breaks, the bullish view becomes invalid and downside pressure may return.

Do you think gold will continue the recovery toward 4,479 next week, or will sellers push price back below the weekly low?

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