XAUUSD Technical Analysis: Gold Trend Review in the London Session
During the current London trading session, the one-hour XAUUSD chart reveals fascinating fluctuations. Following a powerful start to 2026, traders now closely monitor support and resistance levels to identify the market’s next direction. This XAUUSD technical analysis helps you understand gold market volatility better, allowing you to make more precise trading decisions based on real-time data.
Current Market Overview and Gold Price Trajectory
Gold initiated a robust bullish trend at the beginning of 2026. Buyers aggressively pushed the price up from the $4,320 zone, eventually reaching the psychological peak of $4,500. Currently, the market has entered a bearish correction phase after hitting this significant resistance. While the overall gold market trend remains bullish, the current correction indicates temporary selling pressure at peak prices. To stay updated on the latest shifts, you can follow the relevant news headlines review section daily.
Volume Profile Insights: Key Trading Zones
The Fixed Range Volume Profile tool provides deep insights into liquidity concentration across various price levels. For today’s analysis, three critical levels hold immense importance for the global gold spot value:
- Value Area High (VAH) at $4,491: This level marks the upper boundary of the value area. Sellers appeared strongly in this range, and long upper shadows on the candles indicate price rejection from this zone.
- Point of Control (POC) at $4,465: This thick line represents the price where the highest trading volume occurred. Currently, the live gold price fluctuates just below this level, which acts as a price magnet or a pivot point.
- Value Area Low (VAL) at $4,429: This level is the lower boundary of the value area. If the price fails to maintain the POC support, traders will likely drive the price down to this level.
Candlestick Patterns and Price Action
Near the $4,500 peak, we observed candles with small bodies and long wicks, signaling that buyer momentum is exhausting. Immediately after, a Bearish Engulfing candle formed, confirming that sellers have temporarily seized control of the market. Although the price currently sits near the $4,460 support zone, our XAUUSD technical analysis suggests that selling pressure has not fully dissipated yet. You can study our report analysis and education section to better understand these technical concepts.
Predicted Trading Scenarios for Gold
Considering the current market structure in the London session, we envision two primary scenarios for the next move. This gold price prediction depends heavily on how the price reacts to the POC:
- Bullish Reversal Scenario: If buyers defend the $4,460 to $4,465 support zone and a bullish confirmation candle closes above the POC, the price could surge again to test the $4,491 (VAH) level.
- Correction Continuation Scenario: If a one-hour candle closes strongly below the $4,460 level, the bearish correction will likely persist. In this case, the next targets are the $4,429 (VAL) level and eventually the old accumulation zone at $4,356.
Ultimately, traders must pay special attention to the economic calendar and US Dollar related news, as these events can drastically increase market swings. For further details and updates, ensure you check the news source regularly.
Frequently Asked Questions (FAQ)
How is the overall trend of global gold evaluated at the beginning of 2026?
Gold began 2026 with a strong upward trend, successfully increasing the price from the $4,320 range to near the psychological ceiling of $4,500. Although the market has currently entered a corrective phase after hitting this resistance, the overall market structure is still described as bullish in the medium term.
What is the role of the Point of Control (POC) at $4,465 for gold traders?
The Point of Control (POC) at $4,465 represents the level where the highest trading volume is concentrated. This level acts as a pivot; consolidating above it could bring buyers back into the market, while remaining below this level will maintain selling pressure.
Which technical signals on the one-hour chart halted gold’s uptrend?
Near the $4,500 resistance, the formation of candles with long upper wicks indicated price rejection and the exhaustion of buying power. Immediately following that, the formation of a Bearish Engulfing candle confirmed that sellers had taken control of the trading session to initiate a price correction.
If the bearish correction continues, what are the next target levels for gold prices?
If the gold price closes decisively below the $4,460 support level, the probability of a continued decline to the Value Area Low (VAL) at $4,429 is very high. If this level is broken, the old accumulation zone at $4,356 will be the next target for market bears.
Comments