Juejin Old Cat | Weekly Review: Gold Faces Resistance at High Levels, Monday Opening Slightly Bearish

Spot gold opened on Friday at $4618, surged to touch $4621 before facing resistance and pulling back, with a low of $4537. It finally closed around $4596, down $20 from the previous trading day, a decline of 0.43%. After a prior rally, the high-level stagnation signal is clear, and the bulls and bears are entering a critical phase of contention.

Recently, the repeated expectations of Fed rate cuts are the core factor driving gold price fluctuations. Falling inflation data supports expectations of rate cuts within the year, but hawkish statements from some Fed officials and strong employment data prompt the market to adjust timing and magnitude of rate cuts. Coupled with a phased easing of geopolitical tensions, gold safe-haven buying has weakened, and short-term correction pressures continue to intensify.

From the 4-hour technical perspective, after breaking through the key 4500 level, gold failed to maintain strength. Resistance at around 4620 is significant. Currently, the candlestick shows a bearish engulfing pattern, with short-term moving averages turning downward. The MACD indicator shows a death cross at high levels and expanding green bars, indicating bullish momentum is exhausted. Bearish forces are gradually gaining strength. Focus on the support at $4550; if broken, further decline to the $4500-4480 range is possible. Watch the resistance zone at $4610-4620; if unable to break through effectively, the rebound space will be limited.

Monday’s opening strategy centers on high sell and low buy, continuing the overall high short position approach. Two-tier short positions are planned: enter at $4615-4620 with a stop-loss above $4625. If this level is hit, wait and observe; then re-enter at $4635-4640 with a stop-loss above $4645. Both short targets aim for $4550-4530. For long positions, use as auxiliary entries, with light positions at $4570-4580, stop-loss below $4569. Alternatively, wait for a pullback to stabilize at $4530-4540 before attempting a long, with a stop-loss below $4520. Both long targets aim for $4580-4590.

Disclaimer: This article reflects only Juejin Old Cat’s personal views and market analysis. It does not constitute any trading advice. Trading involves risks; investors should exercise caution and make independent decisions based on their risk tolerance and real-time market conditions.