Is the Next Gold Drop Near? February 24, 2026 Market Analysis
The recent price action in Gold (XAU) confirms a significant liquidity grab during the Asian session open. As discussed in the previous session, entering long positions prematurely in the high-value zones proved fatal for many retail traders, leading to immediate liquidations within a 30-minute window.
Technical Structure and Market Displacement
Current market behavior shows that the price is respecting the 61.8% Fibonacci retracement level. The sharp drop observed was a necessary distribution to clear “impatient” buy-side liquidity. We are now navigating a corrective phase before the anticipated expansion toward the macro target of 5,400 USD.
Key Observations
- Current Zone: 5,160 USD (Mid-range equilibrium).
- Liquidity Magnet: 5,080 USD (The primary institutional demand zone).
- Immediate Resistance: 5,200 USD (Potential bull trap/liquidity inducement).
- Market Timing: Volatility is expected to shift during the London-New York transition.
Outlook & Execution Scenarios
- Scenario A: A move toward 5,200 USD to induce late buyers, followed by a secondary drop to 5,075-5,080 USD to tap into deeper liquidity before the final rally to 5,400 USD.
- Scenario B: A direct corrective move to the 5,125-5,130 USD pocket, followed by a bounce to 5,200 USD, then a final retest of 5,080 USD before the bullish continuation.
