In this chart, gold price action shows that after forming a Break of Structure (BoS) at the upper level, the market has entered a consolidation phase inside the highlighted yellow zone. This structure suggests that after a strong bullish rally, price is now in a distribution or temporary pause before choosing its next direction. Repeated rejections and long wicks near the highs indicate buyer weakness and a potential absorption of buy-side liquidity. On the other hand, the lower boundary of the yellow zone sits precisely on the IOFD level, acting as a short-term structural support. If the price breaks this level decisively, it could signal a transition from distribution into the beginning of a bearish trend.
Below the current range, we can see a blue demand zone (Order Block), which represents the last major liquidity pool supporting the market before a deeper decline. This zone may become the next target if IOFD fails. Conversely, the red supply zone above shows clear selling pressure; it contains heavy sell-side orders, and unless price can break and hold above it, the bullish continuation remains uncertain. Overall, the chart suggests that gold is currently trapped between strong supply and demand zones, and traders should wait for a confirmed breakout with strong volume to determine the next directional move.
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