Gold Selloff Continues – Market Moving as Forecast | Feb 25, 2026
Gold (XAUUSD) is currently executing a precise technical expansion, following the secondary scenario outlined in our previous analysis. The market has shifted from a corrective phase into a targeted liquidity run toward lower equilibrium zones.
The Liquidity Trap at 5,200 USD
The recent move to the 5,200 USD level appears to be a classic “Inducement Move.” While retail traders rushed to buy the breakout, institutional participants used this strength to facilitate sell-side liquidity (Distribution). The lack of sustained displacement above 5,200 confirms that the move was designed to trap “late buyers” before the reversal.
Market Structure & Order Flow
Price action has already mitigated the 5,100 USD zone. However, due to the aggressive nature of the initial impulsive leg, this level is no longer considered a strong support. The current Order Flow is clearly bearish, seeking unfilled liquidity pools at lower discount prices.
Key Observations
- 5,200 USD: Acting as a heavy supply zone (Institutional Selling).
- 5,100 USD: Previously tested; now expected to fail as support.
- Session Timing: High-impact volatility observed during the New York Golden Time (18:30 Dubai Time).
- Trader Psychology: Extreme “Impatience” is driving liquidity into the hands of market makers.
Outlook & Downside Targets
As long as Gold remains under bearish pressure and fails to reclaim the local highs, the primary magnet for price is the 5,075 USD level. However, professional traders should look deeper. The 5,050 USD zone represents a more balanced market state and a stronger “Buy-Side Liquidity” pool.
