Yesterday, gold prices plunged over 200 points, and now they have entered a short-term consolidation and correction phase. This pullback is a normal technical correction and not a sign of trend reversal. The recommended trading strategy today remains the same—sell high and buy low, and avoid chasing rallies or panic selling.

From the 1-hour K-line chart, gold shows a typical oscillation correction pattern, with moving averages and Bollinger Bands converging and flattening. Both bulls and bears are temporarily at a standstill, with no clear directional guidance. The middle band of the Bollinger Bands acts as the main intraday support, while the 4398 level above is a short-term strong resistance. Currently, gold is trading around the middle to lower bands, making a breakout from this range challenging in the short term.

Judging from volume and market sentiment, this oscillation is essentially a momentum recovery after an oversold condition, combined with cautious risk aversion at the end of the year. After testing the 4300 level yesterday and quickly rebounding, it indicates there are still buyers below; however, there are many trapped orders around 4400, so the rebound may face resistance once it rises.

In practical trading, if gold can stabilize around 4320-4330, a small long position can be taken with a stop loss below 4310. The initial target is 4350; if a clear breakout occurs, the next target can be 4360. Once reached, it’s time to gradually reduce positions and hold.