A cliff-like plunge is coming! Gold sharply reverses, and the future trend is clear at a glance

From the news perspective, market risk aversion has significantly cooled down, combined with the stabilization and rebound of the US dollar index, and US Treasury yields continue to rise, putting substantial pressure on gold bulls' upward momentum. Meanwhile, market expectations for future monetary policy have shifted, with rate cut expectations further cooling, and the fundamental environment turning from bullish to bearish, causing gold to lose its upward support.

On the technical side, at the four-hour level, the gold price has broken below the middle band of the Bollinger Bands, which are opening downward, expanding the downward space, and is overall in a standard bearish downtrend channel. The KDJ indicator has entered a deep oversold zone, with short-term downward momentum being released intensively. There is a slight rebound correction demand, but the rebound strength is limited. Currently, the market is dominated by a bearish trend, with the 4588 level acting as a strong resistance point. Until the price stabilizes above this level, all rebounds are merely corrections within a bearish trend.

Suggestions:
Consider multiple short positions around 4545-4565 on rebounds, and if the rebound is strong, consider shorting near 4585, targeting 4500, 4450, with a break below looking at 4400.

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