Yichen: The 4600 Defense Battle Begins! Gold Bulls and Bears Clash—Who Will Come Out on Top?

From a technical perspective, the four-hour Bollinger Bands are narrowing and flattening, with the price under pressure below the middle band at 4676.40, trading in the middle-lower range. The lower band at 4587.61 provides a key support level. The KDJ indicator is neutral to slightly bullish, with the three lines turning upward but not yet forming a golden cross, indicating weakening downward momentum and a potential technical rebound, though the strength of the rebound remains to be confirmed.

On the news front, hawkish statements from the Federal Reserve continue to suppress gold prices. The market has already adjusted its rate cut expectations, with only one rate cut priced in for the year and the timing pushed back to after September. The US dollar index and US Treasury yields are rising, increasing the cost of holding gold. Meanwhile, the Middle East situation is marginally easing, leading to a temporary retreat in safe-haven buying. Coupled with profit-taking from previous gains, this adds short-term downward pressure. However, the ongoing global central bank gold purchases and de-dollarization trends still support a long-term bottom for gold prices.

In the short term, 4600 USD remains the key support level. A confirmed break below could see prices decline to the 4550-4500 range. On the upside, resistance is at the 4700 round number. Trading strategies suggest selling high and buying low within this range.

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Trade at your own risk. $XAU