May 12 Morning Thoughts

Yesterday, gold showed a strong rebound after testing the bottom, dipping to around 4648 during the Asian session, and receiving strong support at the key level of 4650. In the evening, the price surged to around 4748, then briefly faced resistance and pulled back, falling to a low of 4708. Bulls launched a fierce attack again, ultimately stabilizing above the middle band of the Bollinger Bands. The daily chart closed with a bullish candle with an upper shadow, and the current gold price is at 4769, with strong bullish momentum.

There are no major data releases on the news front; the market is mainly watching the US dollar index and Federal Reserve policy expectations. As the expectation of rate cuts remains cautious, the dollar's trend will directly determine the short-term rhythm of gold.

From the four-hour chart, gold has formed a bottom around 4650 and rebounded, repeatedly breaking through previous resistance levels, showing a strong oscillating upward pattern. The pullback strength is weak, and support levels below are very solid. The outlook remains firmly bullish with a low-buying strategy.

It is recommended to buy on dips around 4720-4735, with short-term targets first at 4770-4780, and if broken, further targeting the 4800 level.