Yichen: Countdown to Federal Reserve rate cuts! Gold surges violently after being oversold, marking the beginning of a bull feast

From a technical perspective, the price is effectively supported around 4375. The KDJ indicator's three lines are turning upward from low levels, with the J value gradually recovering after entering the oversold zone, indicating that short-term bullish momentum is building. The lower band of the Bollinger Bands provides a support floor for the price. As the bearish momentum diminishes, gold prices are expected to launch a counterattack toward the midline at 4452.

On the news front, the Middle East geopolitical conflict continues to intensify, with shipping risks in the Strait of Hormuz increasing, significantly boosting market risk aversion sentiment and providing strong safe-haven buying support for gold. Meanwhile, expectations for Fed rate cuts are moving forward, the US dollar index is struggling to rise, and the valuation recovery window for precious metals is opening. Additionally, if the US core PCE data comes in below expectations, it will further solidify the narrative of slowing inflation, reinforcing gold’s dual role as an inflation hedge and safe haven.

Suggestions:
Buy on dips around 4350-4370 in batches, target 4450, 4500

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Trade at your own risk.$XAU