Last night, the US market staged another drama. Gold futures opened high at 4549, approaching the all-time high of 4549.6, but encountered a ceiling and started to fall. This was not a normal correction but a full-blown wave of selling—futures traders taking profits, weak longs closing positions en masse, causing buying pressure to collapse. The gold price plummeted from the peak to 4303 before finding a breathing space, finally closing at 4331, with a large bearish candle swallowing 246 points, indicating a shift from strong to weak trend.

The logic behind this move is quite clear: in the last trading week of the year, various funds are cashing out and rebalancing their positions. Although precious metals hit a new high for the phase, stock index futures diverged, and the tech sector was under pressure. There’s no sign of a broad market rally, and market sentiment has already turned conservative.

Even if there is a rebound today, it will be significantly weaker. The key level to watch is 4360, which is the life-and-death line for bulls and bears today. If it cannot hold above 4360, the market will continue to decline sharply. Short-term traders should not rush to buy the dip; instead, prioritize shorting opportunities during rebounds. If you want to go long, wait for a correction and gradually build a position with light holdings. Focus on the resistance zone of 4356-4374 above, and support at 4285-4271 below. Be sure to strictly control your positions and avoid digging your own trap.