Juejin Old Cat

Midnight Gold Review: Rushing Up and Pulling Back, Bearish Outlook Remains Unchanged

Today, gold experienced a typical rally followed by a sharp pullback. After opening at 5022 in the early session, the bulls initially gained momentum and pushed prices to around 5119, an increase of over 90 dollars, causing market sentiment to become euphoric. However, the bullish momentum quickly faded, and prices sharply retreated from the high, dipping to around 5019 before closing near 5079, with an intraday range exceeding 100 dollars. This intense rollercoaster movement once again confirms the current market's high volatility characteristics.

From a news perspective, today’s market sentiment was mainly influenced by the dual effects of safe-haven capital flows and the US dollar trend. The rapid rise in the morning was related to increased concerns over geopolitical risks, which boosted safe-haven buying in gold. But as the US dollar index stabilized and rebounded in the afternoon, combined with some long traders taking profits, the rally quickly reversed, leading to a significant outflow of funds from the precious metals market and a sharp decline in prices.

Technically, on the hourly chart, it is clear that gold did not stabilize after breaking through the 5100 level, but instead formed a prominent "shooting star" pattern, which is a strong bearish signal. Currently, prices have fallen back below 5080, with short-term moving averages turning downward, and the MACD indicator showing a death cross, indicating increasing bearish momentum. The key support levels are in the 5050-5040 range; if broken, further declines toward the 5000 level are possible. Resistance is concentrated around 5100-5110, which was today’s high and the core area for bears to defend.

Based on the current technical pattern and market sentiment, I remain firmly bearish. For trading, it is recommended to gradually establish short positions in the 5100-5110 range, with a stop-loss above 5120. The initial target is 5050-5040, and if broken, further down to the 5000 level. If prices unexpectedly break through 5120 strongly, temporarily abandon short positions and wait for new signals.

Disclaimer: The above analysis reflects personal opinions only and does not constitute any investment advice. The market carries risks; trading should be cautious. Any gains or losses from operations are at your own risk.