Weekly Gold Market Case Study: Understanding Price Structure and Reaction Zones

Weekly Case Study – 01

Asset: Gold (XAU/USD)

Timeframe Observed: H1

Study Focus: Structural Continuation After Consolidation

Case Study Overview

During the observed session, gold price entered a narrow consolidation range after a prior directional move. Price action showed repeated rejection from lower levels, indicating absorption of selling pressure rather than aggressive downside continuation.

The study focused on how price behaved around a previous reaction zone, where market participation gradually increased.

Key Market Observations

Price respected an earlier structural base

Downside attempts failed to gain momentum

Candlestick behaviour suggested balance, not weakness

Market remained above the short-term structure reference

Analytical Insight

Instead of reacting impulsively, the market displayed controlled movement, often seen before continuation phases. This behaviour highlighted the importance of waiting for structure confirmation rather than anticipation.

Learning Outcome

This case study demonstrates how:

Consolidation does not imply reversal

Structure maintenance is more important than short-term volatility

Patience improves analytical clarity

 

Weekly Case Study – 02

Asset: Gold (XAU/USD)

Timeframe Observed: H1

Study Focus: Price Expansion from Demand Reaction Zone

Case Study Overview

In this instance, gold price reacted strongly from a previously tested demand area, showing swift recovery after a brief pullback. The move was not driven by sudden volatility but by gradual participation increase.

The focus of the study was to understand how price expansion develops after liquidity is absorbed.

Key Market Observations

Sharp rejection from lower prices

Momentum improved after structure alignment

Prior resistance acted as short-term support

Price movement remained orderly, not erratic

Analytical Insight

This behaviour reflects a typical re-accumulation to expansion model, where price first tests interest zones before moving away decisively. Such phases are best studied from a behavioural perspective, not predictive assumptions.

Learning Outcome

This case study highlights:

Why reactions matter more than levels

How liquidity absorption precedes expansion

The value of context over isolated candles

 

Closing Note

Both case studies are presented solely to study market behaviour and price structure.
They are intended to improve understanding of how gold reacts around key areas over a short-term horizon.