Yi Chen: Cliff-like plunge! Gold breaks through key support, short sellers' feast begins!

From a news perspective, Federal Reserve Chair Powell's latest remarks reinforce the stance of "not easily cutting rates before inflation falls back," coupled with U.S. core inflation data exceeding expectations. The market is reassessing the monetary tightening path, with Treasury yields and the dollar index strengthening in tandem, directly suppressing valuations of interest-free assets like gold. Meanwhile, although Middle East geopolitical conflicts continue to develop, safe-haven funds have shifted from gold to high-yield U.S. Treasuries. The SPDR Gold ETF has experienced consecutive days of net outflows, and institutions locking in profits at higher levels have intensified selling pressure.

From a technical perspective, gold price has broken through the lower band of the Bollinger Bands, MACD green histogram continues to expand, and the four-hour level shows a clear downtrend. The short-term range of 4450-4470 USD will become key support. If effectively broken through, gold price may further test 4300 USD; if it stabilizes after stopping the decline, watch for rebound resistance near 4600 USD.

Suggestion:
Sell in batches near the 4520-4550 rebound, targets at 4450, 4400, if broken look at 4300

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Investors bear the risk of trading based on this analysis. $XAU