5.11 Evening Gold Analysis

News
The US dollar index continues to fluctuate on the stronger side, coupled with the market’s re-pricing of the Federal Reserve’s policy path, which has continued to undermine bullish confidence in gold, putting pressure on prices to fall back. The Modi government’s announcement of austerity measures has temporarily raised concerns about physical gold demand, further amplifying the downside pressure on gold prices. Tonight, attention should be paid to the risk appetite changes after the US stock market opens and the market’s real-time response to geopolitical developments. The retreat of short-term safe-haven sentiment remains one of the core factors suppressing gold prices.

Technical
From the 1-hour chart, after the gold price broke below the middle band support of the Bollinger Bands, it continued to move toward the lower band, with the Bollinger Bands opening downward, indicating a clear bearish trend. Currently, after breaking below the key support level of 4680, the rebound is weak, and the price continues to be under pressure, with a low of around 4648, currently trading around 4660. The KDJ indicator is in the oversold zone, showing signs of turning up but has not yet formed a clear golden cross signal. Short-term oversold rebound momentum is limited, and the overall trend remains dominated by bears.

Trading Strategy
A rebound around 4670-4690 can be used to enter short positions, targeting 4650-4640, with a break below aiming for 4620.