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This morning, gold briefly surged to 4466 before turning back, dropping to a low of 4433. Currently, it is oscillating between 4440 and 4450. The 4450 level was broken through and then pulled back, a typical sign of both bulls and bears fighting it out here.
What are the recent market drivers? Several hawkish signals were sent by Fed voting members early in the session. They indicated that inflation is not coming down as quickly as expected, which dampened market expectations for rate cuts. The US dollar index has been climbing steadily, and gold was directly pushed down. However, the geopolitical developments in the Middle East have introduced new dynamics, providing strong support for gold. After the sharp decline, buying interest has re-entered, preventing a one-sided downward move.
In the short term, gold is trading within the 4430-4470 range. Resistance at 4463-4470 is holding firmly, while the 4430-4440 zone can support the price. This afternoon, focus on two main directions: one, whether the Middle East situation will continue to worsen and escalate—if it does, safe-haven funds are likely to push gold back above 4460; and two, whether the US dollar can continue to strengthen. If hawkish Fed signals remain strong, gold may test the 4430 support level again.
How to operate specifically? Consider going long on gold around 4440-4445. If it retraces to 4428-4434, add to long positions, with a stop-loss at 4420. Targets are initially set at 4465, then 4474, and finally 4490. When these resistance levels are reached, be prepared to take profits.
Market conditions are highly unpredictable, so trading strategies must be adjusted based on real-time news and market movements. Staying updated will be more helpful. Most importantly, don’t panic and chase the market recklessly; maintaining rational trading is the key.