XAUUSD & Gold — How Do You Use Fair Value Gaps?

Fair Value Gaps (FVGs) on XAUUSD are price imbalances created by aggressive, impulsive moves where one-sided market orders leave unfilled liquidity behind. Traders typically mark these three-candle zones on higher timeframes like the 1H or 4H, then wait for a retracement back into the FVG to enter in the direction of the original impulse.

When trading Gold on a prop firm account, FVGs can help pinpoint precise entries, but risk management is key. Gold is notoriously volatile around high-impact news events, which can quickly breach tight FVG zones and test your daily loss limits. Always factor in spread, position sizing, and your firm's specific drawdown rules before pulling the trigger.

How do you filter out low-probability FVGs on Gold? Feel free to share your setups below!