Recently, the international spot gold has shown a significant decline, with a shift in market sentiment, influenced by multiple factors affecting the gold price trend.
On the news front, Federal Reserve officials have released hawkish signals, leading to an increase in market expectations for future interest rate hikes, which has driven up the dollar index and U.S. Treasury yields, while gold, as a non-yielding asset, has lost its appeal. Meanwhile, geopolitical tensions in the Middle East have eased somewhat, resulting in a gradual exit of risk-averse buying that previously supported gold prices, leading to capital outflows from long positions. From a technical perspective, gold prices have broken below key support levels, triggering short-term selling pressure and further driving down the market.
Looking ahead to today’s trend, gold prices are in a weak recovery phase after a significant drop, and the rebound strength is likely to be limited. The short-term pressure zone is between 4320-4340, while the key support levels to watch below are the first support at 4270 and strong support at 4230. If the price rebounds and faces pressure in the resistance zone, there is a possibility of weakening again in the short term; only if it stabilizes after revisiting the 4230 line can we expect a short-term recovery.
In terms of trading strategy, in the short term, consider prioritizing short positions on rebounds; once a rebound encounters pressure, look for opportunities to short; wait for the price to retest 4230 to confirm stabilization signals before considering short-term long positions. With increased market volatility, it is essential to set stop-loss orders and manage position sizes during trades.
Risk Warning: This article is only a market analysis and does not constitute any investment advice. The financial market is highly volatile, and investors need to make rational judgments and independently bear trading risks.
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