Gold Liquidity Sweep (Stop Hunt) Explained

A gold liquidity sweep is a move that runs the stop orders resting beyond an obvious XAU level — the Asian session high or low, the prior day high or low, a $50 round number, or equal highs and lows — and then reverses back inside the range.

Valid sweeps typically pierce by $2 to $8, stall immediately and close back on the original side of the level within one or two candles, which is the entry trigger; the stop sits beyond the sweep wick plus a spread buffer.

The sweep and the session breakout watch the same levels with opposite conclusions, so the deciding test is whether a nameable macro driver and a live session are behind the move.