Yichen: Dollar Weakness Provides Support! Gold Surges Violently, Short Defense Line Completely Collapses
From a technical perspective, on the four-hour chart, gold price has powerfully broken through the middle band of the Bollinger Bands and is steadily approaching the upper band. Short-term moving averages have formed a bullish alignment, providing solid support for gold prices. Although the KDJ indicator is at elevated levels, it continues to diverge upward, indicating abundant bullish momentum. Short-term pullbacks appear to be consolidation rather than trend reversal.
In terms of news, Middle Eastern geopolitical conflicts continue to escalate, shipping risks in the Strait of Hormuz are intensifying, global risk-averse sentiment is at an unprecedented high, and massive capital inflows into gold are seeking safe haven, becoming the core driver of gold price increases. Simultaneously, market expectations for a Federal Reserve rate cut in June continue to build, putting pressure on the US dollar index and weakening it further, which amplifies the upside elasticity of precious metals. If the upcoming US initial jobless claims data comes in weaker than expected, it will directly strengthen rate-cut expectations and push gold to break through the $4600 level, opening up greater upside space.
Suggestions: Buy in batches near 4455-4485 on pullbacks, targets at 4580, 4640, if broken watch 4700, aggressive traders can buy in batches near 4500
Disclaimer: The above analysis is for reference only and does not constitute investment advice. You bear the risk of acting on this information. $XAU
Yichen: Dollar Weakness Provides Support! Gold Surges Violently, Short Defense Line Completely Collapses
From a technical perspective, on the four-hour chart, gold price has powerfully broken through the middle band of the Bollinger Bands and is steadily approaching the upper band. Short-term moving averages have formed a bullish alignment, providing solid support for gold prices. Although the KDJ indicator is at elevated levels, it continues to diverge upward, indicating abundant bullish momentum. Short-term pullbacks appear to be consolidation rather than trend reversal.
In terms of news, Middle Eastern geopolitical conflicts continue to escalate, shipping risks in the Strait of Hormuz are intensifying, global risk-averse sentiment is at an unprecedented high, and massive capital inflows into gold are seeking safe haven, becoming the core driver of gold price increases. Simultaneously, market expectations for a Federal Reserve rate cut in June continue to build, putting pressure on the US dollar index and weakening it further, which amplifies the upside elasticity of precious metals. If the upcoming US initial jobless claims data comes in weaker than expected, it will directly strengthen rate-cut expectations and push gold to break through the $4600 level, opening up greater upside space.
Suggestions:
Buy in batches near 4455-4485 on pullbacks, targets at 4580, 4640, if broken watch 4700, aggressive traders can buy in batches near 4500
Disclaimer: The above analysis is for reference only and does not constitute investment advice. You bear the risk of acting on this information. $XAU