GOLD NEXT WEEK: BREAKDOWN YA REVERSAL? TRUTH WILL SHOCK YOUNext week is looking very interesting to me because market makers have already set a strong trap. Based on the current structure and price action, the market is now appearing highly bearish to most traders.
Last week, many traders expected that after the breakdown of $4100, the reversal would continue to the upside. However, those expectations failed, and buyers were heavily liquidated. Because of the strong downside move, a large portion of traders have now shifted their bias toward selling.
As a result, many traders will prefer selling on pullbacks next week, targeting the key psychological level of $4000. But the real question is — will the market actually allow sellers to achieve this so easily?
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Last week, after sweeping liquidity around $4366, the market showed a sharp rejection from around $4383. This area is important because it has already acted as resistance before.
If you look back, on 17th October 2025, the market formed a high around $4380, and from that level we saw a major drop of nearly 11.30%. Interestingly, last week during FOMC, the market again rejected from this same zone, which has increased seller confidence.
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From a broader perspective, the market has been consistently making lower lows over the past few weeks. However, one important detail is that last week did not sweep the previous week’s low and instead closed on the upside.
This shift is important, and because of that, I am expecting a bullish weekly candle next week.
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Now coming to an important technical observation:
If you look at the daily timeframe, the 11th June candle (liquidity sweep candle) is very strong. Based on my experience, such strong candles are rarely broken directly.
Most of the time, the market first focuses on liquidity generation (creating traps and building positions), and only after that does it break down or move beyond such strong candles.
This further supports the idea that the market may not move directly toward $4000, and instead will spend time trapping traders before the actual move.
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Since the market has been falling continuously, sentiment has turned strongly bearish. Most traders are now expecting a direct move toward $4000, but this is a major psychological level, and the market usually does not allow such obvious targets to be achieved easily.
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For me, the $4136 – $4084 zone is a very important support area.
As long as gold is trading above this zone, I am not interested in selling. Instead, I expect the market to show small pullbacks to attract sellers, and then gradually move higher.
From a higher timeframe perspective as well, this zone is strong. Until we see a strong 1-hour candle closing below it with volume, selling remains risky, especially after such an extended downside move.
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Also, considering the rejection from the $4380 area and the recent FOMC move, many traders who sold from that zone are likely holding positions and targeting lower levels.
However, I expect that the market may break above $4383 (last week’s high), especially because it is very close to $4400, where many traders typically place their stop losses.
If that happens, it can trigger a liquidity grab and push the market higher.
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Final Plan
Overall, I am bullish on gold for next week.
As long as price holds above $4084 – $4136, my focus will be on looking for buying opportunities rather than chasing sells.
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I hope this analysis gives you clear direction for next week.
What’s your plan for gold? Let me know 👇
