Gold Digger Old Cat: High-level Volatility Builds Up, Maintaining a Bearish Main Tone

In the trading journey, patience is the foundation of profit, risk control is essential for survival. Only by not greedily chasing and not fearing can one achieve steady progress.

Today’s gold market shows a pattern of strong surge followed by high-level consolidation. After the opening this morning, prices surged sharply, reaching around 4993.97 at one point, then repeatedly consolidating within a high range, overall maintaining a high-level operation. The bullish momentum slowed after the surge, and the market entered a critical phase of bullish and bearish competition.

On the news front, changes in global market risk appetite and geopolitical developments continue to influence gold trends. The market’s demand for safe-haven assets has temporarily increased, while fluctuations in the US dollar index and US bond yields also provided upward momentum for gold. However, as prices rise significantly, the market becomes more sensitive to subsequent news guidance, and caution is needed regarding the risk of a pullback caused by a decline in sentiment.

Technically, on the hourly chart, gold shows signs of stagnation after consecutive bullish candles. After surging near 4993, the price faced resistance and pulled back. Although the short-term moving averages remain in a bullish alignment, the MACD indicator’s red bars are gradually narrowing, and the KDJ indicator shows signs of turning down in the overbought zone, indicating that short-term bullish strength is weakening. Resistance exists in the 4990-5000 range above, while support is formed around 4900-4920 below. The overall trend presents a correction after the surge.

Strategy-wise, the focus remains on a high-short approach. Watch for resistance in the 4990-5000 range; if touched, consider short positions. The target below is 4920-4900. If the price unexpectedly breaks below 4900, follow the trend and look for a move toward around 4850. Long positions are temporarily not considered; strictly adhere to the core strategy of low buy and high sell, focusing on shorting opportunities at high levels.

This article is only a personal trading idea sharing and does not constitute any investment advice. The market carries risks; trading should be cautious. Operate at your own risk of profit and loss.