Gold False Breaks Monthly Highs - How to Identify Liquidity Zones and False Breaks

What a week it's been for gold! We witnessed a break, a false one as it turned out, above the crucial 2074 monthly high—a level that's held its ground multiple times over the last few years. Some might even refer to it as the "COVID-peak" or the "Putin-peak."

What a week it's been for gold! We witnessed a break, a false one as it turned out, above the crucial 2074 monthly high—a level that's held its ground multiple times over the last few years. Some might even refer to it as the "COVID-peak" or the "Putin-peak."

This break seemed significant until it swiftly retraced. This prompts an insight I'd like to share with you: the importance of liquidity zones in the market. Our senior market strategist, Duncan Cooper, delves into this concept in a free three-part trading course, with one part dedicated to liquidity zones, available for all here.

So, what exactly are these liquidity zones? Picture this: you're a big financial institution with sizable sell orders, say $500 million worth of gold. You'd need a significant number of buyers to prevent pushing prices down substantially, right? That's where liquidity zones come in.

Consider this gold example: the triple top on the monthly chart. While the price broke above it momentarily, that area potentially attracted a pool of buyers—those looking to exit their short positions with buy orders just above that triple top. This creates a zone where buyers are likely congregated.

Why is this important? Well, these zones offer insight into where significant buying or selling activity might cluster. In our case, despite the break, it seems there was strong selling pressure around that 2074 level, evident from the subsequent retracement.

This observation leads me to advise keeping an eye on what we call false breaks or liquidity zones—areas where substantial orders could be filled. Even though these events don't necessarily reverse trends, they offer valuable insights into potential price movements.

As we head into the weekend, I wish you all the best with your gold trading. I'll personally be watching to see if gold can reclaim that crucial level. If so, it might signal a continuation of the upward trend.

Have a fantastic weekend, traders!

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.

ACY Securities
종류: STP, ECN, Prime of Prime, Pro
규제: ASIC (Australia), FSCA (South Africa)
read more
USD/JPY on Hold, But Yen Rally Could Resume at Any Moment

USD/JPY on Hold, But Yen Rally Could Resume at Any Moment

The USD/JPY pair has paused its recent decline, stabilising around 147.16 on Thursday. The yen continues to find support from its status as a safe-haven asset, with demand bolstered by a weaker US dollar amid the ongoing US government shutdown.
RoboForex | 10 시간 56 분 전
Dollar slides as US government shutdown looms

Dollar slides as US government shutdown looms

US government shuts down tonight if no spending bill passes - Shutdown could suspend the release of jobs report - Wall Street closes in the green, gold hits fresh record high - RBA stands pat, aussie gains on hawkish tilt
XM Group | 11 시간 40 분 전
Dollar Consolidates as Shutdown Risks and Central Bank Signals Drive FX Moves | 2nd October 2025

Dollar Consolidates as Shutdown Risks and Central Bank Signals Drive FX Moves | 2nd October 2025

The Dollar steadied as shutdown risks and central bank signals kept markets cautious. DXY held near 97.70–97.75, EUR/USD climbed above 1.1700, GBP/USD hovered at 1.3500, and USD/CHF consolidated around 0.7960. EUR/JPY rebounded from support, while broader FX stayed rangebound. Traders now focus on U.S. inflation, jobs, Eurozone data, and Swiss CPI for direction.
Moneta Markets | 12 시간 8 분 전
The cryptocurrency market soared to extremes

The cryptocurrency market soared to extremes

The cryptocurrency market capitalisation soared by 4% over the past day to $4.07 trillion.The cryptocurrency market capitalisation soared by 4% over the past day to $4.07 trillion
FxPro | 14 시간 2 분 전
Risk sentiment weakens as US government shutdown commences

Risk sentiment weakens as US government shutdown commences

US federal government shuts; markets digest developments; Barring an agreement, Friday’s jobs report will not be published; Focus today on ADP and ISM survey; Fedspeak calendar is light; Gold rally continues; oil stabilizes after reports of 500k bpd increase are dismissed;
XM Group | 1 일 전