Shanks on Gold: Gold Plunges from Highs, Bearish Continuation

Today's gold market perfectly aligned with our early bearish outlook, experiencing a sharp decline. After opening, gold prices briefly surged to 4500.54, then market sentiment quickly turned sour, leading to a waterfall decline, with the lowest touching 4443.46. As of press time, there was a slight rebound, but prices still hovered around 4454, down more than 40 points from yesterday's close.

The repeated expectations of the Federal Reserve cutting interest rates within the year are a key driver of this trend. Recently released economic data have shown strength, weakening market bets on aggressive rate cuts, which caused U.S. Treasury yields to rise and the dollar to strengthen, directly suppressing gold prices. Additionally, the phased recovery of risk assets like US stocks has also reduced gold's safe-haven appeal, leading to capital outflows from the gold market.

From a technical perspective, after touching the 4500 level, gold encountered strong selling pressure. On the 5-minute candlestick chart, prices repeatedly broke through several key support levels, forming a clear bearish trend. Currently, the 4450 level provides temporary support, but the rebound remains weak.

If subsequent rebounds can break through the 4465-4470 resistance zone, gold may attempt to challenge the 4480 level. Conversely, if the 4450 support is broken, focus should shift to the 4430 support. If that level also gives way, prices could further decline to the 4410-4400 range.

Operationally, we maintain our early bearish stance, recommending mainly short positions on rallies. Entry points can be waited for after a rebound to the 4465-4470 resistance zone to observe for signs of resistance before entering. The initial target below can be set at 4430.

This article reflects personal opinions only and does not constitute any investment advice. The gold market is highly volatile; investors should make independent judgments based on their own circumstances and bear the risks themselves.