7.6 Evening Thoughts: Single-day Plunge of 66 Points Hits Bottom and Rebounds! Gold's Overnight Direction is Set
In the day, gold opened with a continued strong trend, surged to an intraday high of 4202, but after touching a key resistance level, the upward momentum quickly weakened, and it then started a unilateral decline. The decline further expanded in the afternoon, hitting a low of 4136, a retracement of over 66 points from the intraday high, with long and short forces completing a rapid intraday switch. In the evening, low-level buying funds gradually entered, and prices began an oversold recovery.
From a fundamental perspective, there are divergences in expectations for a Fed rate cut in July, and the short-term strengthening of the US dollar index has been continuously pressuring gold prices, coupled with concentrated profit-taking at highs, which are the core drivers of this round of sharp decline. In the evening, market sentiment gradually eased, with bottom-fishing funds stepping in to provide support, driving gold prices into a rebound recovery.
From a technical perspective, the 10-minute level has broken below the short-term uptrend line, with short-term moving averages turning downward to form resistance, and the short-term bearish pattern remains unchanged for now. The oscillator indicators are undergoing recovery after being oversold. The key resistance above is the 4165-4170 range, while support below is initially the intraday low of 4136; if broken, it will further test the 4130-4100 area.
Operation reference: Short in batches on rebounds in the 4160-4180 range, with targets at 4130, 4100, 4070. $XAUT
7.6 Evening Thoughts: Single-day Plunge of 66 Points Hits Bottom and Rebounds! Gold's Overnight Direction is Set
In the day, gold opened with a continued strong trend, surged to an intraday high of 4202, but after touching a key resistance level, the upward momentum quickly weakened, and it then started a unilateral decline. The decline further expanded in the afternoon, hitting a low of 4136, a retracement of over 66 points from the intraday high, with long and short forces completing a rapid intraday switch. In the evening, low-level buying funds gradually entered, and prices began an oversold recovery.
From a fundamental perspective, there are divergences in expectations for a Fed rate cut in July, and the short-term strengthening of the US dollar index has been continuously pressuring gold prices, coupled with concentrated profit-taking at highs, which are the core drivers of this round of sharp decline. In the evening, market sentiment gradually eased, with bottom-fishing funds stepping in to provide support, driving gold prices into a rebound recovery.
From a technical perspective, the 10-minute level has broken below the short-term uptrend line, with short-term moving averages turning downward to form resistance, and the short-term bearish pattern remains unchanged for now. The oscillator indicators are undergoing recovery after being oversold. The key resistance above is the 4165-4170 range, while support below is initially the intraday low of 4136; if broken, it will further test the 4130-4100 area.
Operation reference: Short in batches on rebounds in the 4160-4180 range, with targets at 4130, 4100, 4070. $XAUT