Yichen: Cliff dive! Gold breaches key support, shorts' feast begins!

From a fundamental perspective, Fed Chair Powell's latest remarks reinforce the stance of "no rate cuts before inflation retreats," coupled with U.S. core inflation data exceeding expectations. The market is reassessing the monetary tightening path, with U.S. Treasury yields and the Dollar Index strengthening in tandem, directly suppressing the valuation of non-yielding assets like gold. Meanwhile, although geopolitical tensions in the Middle East remain simmering, safe-haven flows have shifted from gold to high-yield U.S. Treasuries. SPDR Gold ETF has experienced consecutive days of net outflows, and profit-taking by institutions at elevated levels has intensified selling pressure.

From a technical perspective, gold price has broken below the Bollinger Band lower rail, MACD green columns continue to expand, and the four-hour bearish trend is clear. In the short term, the 4450-4470 USD range will become key support. If breached effectively, gold price may further test 4300 USD; if it stabilizes on a rebound, attention should be paid to resistance near 4600 USD.

Recommendations:
Scale into shorts on rebounds near 4520-4550, targets at 4450, 4400, breakdown looks to 4300.

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Please assume your own risk for any operations based on this. $XAU