We performed the cross-correlation analysis on energy-dependent light curves of the Z-type source GX 5-1. We observed X-ray delays of a few hundred seconds between hard (16-30 keV) and soft (2-5 keV) X-ray light curves. During these phenomena, the centroid frequency of horizontal branch oscillation (HBO) was found to shift to lower or higher frequency indicating towards the dynamical movement of a Compton cloud or an inner disk front. Both eastern and western approaches were used to unfold the X-ray continuum and systematic changes were observed in soft and hard X-ray spectral components. Simultaneous energy spectral and power density spectral study shows that the production of HBOs is closely related to the Comptonizing region rather than the accretion disk. We discuss the results in the context of re-condensation of coronal material in the inner accretion disk region.