Gold Rebuilds Structure Above $3940, Eyeing $4030 Liquidity Pool🔍 Market Context
Gold is attempting to regain bullish momentum as safe-haven demand remains supported by rising geopolitical tensions and uncertainty around the upcoming US ADP employment data.
The market continues to oscillate between risk aversion and rate expectations — with the Fed’s hawkish tone keeping the Dollar capped but steady.
At the same time, capital flow rotation from equities into defensive assets is quietly supporting the metal’s structural recovery, with gold holding above key liquidity levels despite intraday volatility.
📊 Technical Analysis (H1–H4)
After forming a double-bottom structure near $3,938, XAU/USD has reclaimed the 38.2% retracement zone (3,974–3,975) from its previous bearish leg.
This area now acts as a pivot zone, separating short-term bullish continuation from potential retracement.
The chart reveals a classic liquidity cycle shift:
Phase 1: Sweep of downside liquidity below 3,930, marking an internal structural low.
Phase 2: Expansion leg reclaiming short-term FVGs, signaling a potential smart money accumulation phase.
Phase 3: Repricing toward upper liquidity targets aligned with Fibonacci extensions.
Key Technical Zones:
• 💎 Liquidity Base: 3,938 – 3,950 (recent demand re-entry area)
• 🎯 Rejection Zone 1: 3,974 – 3,999 (previous inefficiency block)
• ⚙️ Target Zone: 4,033 – 4,045 (1.272–1.618 Fibo extensions, liquidity pool)
• ⚠️ Invalidation: Break below 3,920 would shift structure back to distribution.
🎯 MMFLOW Scenario
If gold sustains above the 3,950 support cluster, buyers are likely to extend the retracement toward 3,999–4,033 where resting liquidity sits.
A clean rejection from 4,000 could trigger an intraday pullback — but as long as price holds above the 3,938 OB base, the bullish recovery structure remains intact.
The short-term narrative favors controlled accumulation, suggesting that smart money is building positions into liquidity zones before the next impulsive move.
⚜️ MMFLOW Insight:
“Liquidity isn’t random — it’s engineered. Every move leaves a footprint, and gold is tracing its next one above $3,950.”
Long
