4.6 Miao Yao Gold Morning Sharing

Last week, gold showed a pattern of rallying sharply and then pulling back. During the session, the intraday high briefly touched the 4800 level, then it pulled back significantly. The low fell to 4461, and the weekly line closed around the 4675 area. After the morning opened, it plunged directly to 4600. There is currently a temporary support, and overall the market remains in a wide-range, choppy consolidation pattern.

This wave of weakening in the gold price was mainly due to the dual negative shocks from the Non-Farm Payrolls data and Trump’s remarks, with short-term bearish forces clearly taking the upper hand. The core reason is that this Non-Farm Payrolls data came far above market expectations, completely wiping out expectations for a Fed rate cut in June. Following that, the US Dollar Index and US Treasury yields both strengthened in tandem, bringing extremely strong downward pressure to gold prices.

From the 1-hour timeframe trend, gold’s prior upward trendline has been effectively broken. This rally-and-pullback move has formed a clear short-term topping structure. The 4800 whole-number level above acts as an extremely strong resistance level, and it is difficult to break through again in the short term. The 4538-4482 range below is a key support zone, and it is an important defensive area for the bulls.

Gold retracement: enter long at 4580-4600, target 4650-4680 4.6 Miao Yao Gold Morning Sharing

Last week, gold showed a pattern of rallying sharply and then pulling back. During the session, the intraday high briefly touched the 4800 level, then it pulled back significantly. The low fell to 4461, and the weekly line closed around the 4675 area. After the morning opened, it plunged directly to 4600. There is currently a temporary support, and overall the market remains in a wide-range, choppy consolidation pattern.

This wave of weakening in the gold price was mainly due to the dual negative shocks from the Non-Farm Payrolls data and Trump’s remarks, with short-term bearish forces clearly taking the upper hand. The core reason is that this Non-Farm Payrolls data came far above market expectations, completely wiping out expectations for a Fed rate cut in June. Following that, the US Dollar Index and US Treasury yields both strengthened in tandem, bringing extremely strong downward pressure to gold prices.

From the 1-hour timeframe trend, gold’s prior upward trendline has been effectively broken. This rally-and-pullback move has formed a clear short-term topping structure. The 4800 whole-number level above acts as an extremely strong resistance level, and it is difficult to break through again in the short term. The 4538-4482 range below is a key support zone, and it is an important defensive area for the bulls.