Gold (XAUUSD) continues to show strong bullish momentum, with Smart Money Concept (SMC) principles highlighting a clear market structure and liquidity-driven trend. As price action unfolds, traders are monitoring potential demand zones and liquidity pools to determine the next move.
Market Structure
The broader trend is strongly bullish, confirmed by consecutive higher highs and higher lows. Each new upward impulse has been supported by a Break of Structure (BoS), reinforcing that institutional buyers remain dominant in the market.
Order Blocks and Demand Zones
The most significant demand order block currently sits in the 3720 – 3750 range. This area has already triggered strong buying pressure, signaling active institutional interest. Holding above this zone keeps the bullish scenario intact.
Liquidity and Fair Value Gaps
The market continues to sweep buy-side liquidity above recent highs, driving prices toward untapped zones. Meanwhile, Fair Value Gaps (FVGs) between 3650 – 3680 remain untested and could serve as retracement points if a correction takes place.
Forecast and Trade Setup
Based on SMC analysis, the next bullish liquidity target for gold is 3900 – 3920. This area aligns with key liquidity pools and could attract further institutional flow.
Trade Setup (Forecast):
- Buy Entry: 3720 – 3750 (on pullback)
- Stop-Loss: Below 3680
- Take-Profit: 3900 – 3920
Alternative Scenario:
If no correction occurs, breakout buying above current highs remains valid, though traders should apply tighter risk management and conservative position sizing.
Conclusion
Under the Smart Money Concept framework, XAUUSD remains firmly bullish. As long as price respects the 3720 – 3750 demand block, buyers are likely to push toward the 3900 – 3920 liquidity zone. This creates a favorable outlook for gold traders seeking alignment with institutional market flow.
Disclaimer: This forecast is for educational purposes only and should not be considered financial advice. Always manage risk responsibly when trading.