5.12 Afternoon Market Analysis

Today, the Asian session gold initially moved higher, reaching a high zone, but encountered selling pressure from above, causing the price to quickly reverse downward. After falling back to the 4718 level during the session, the decline paused and did not effectively break below the short-term key support level. Currently, gold prices are trading within a narrow range around 4720.
The short-term bearish momentum is gradually weakening, and buying support at lower levels is emerging, indicating signs of stabilization and a potential halt to the decline.

On the news front, the US dollar index remains oscillating at a relatively strong high level, somewhat constraining the upward space for gold; however, market expectations for continued easing of Federal Reserve monetary policy remain, indirectly supporting a downward correction in gold prices. Overall, market sentiment is strongly polarized between bulls and bears, leading to a range-bound tug-of-war.

From a technical perspective, the short-term Bollinger Bands are gradually converging and flattening. The hourly technical indicators have mostly recovered after a round of correction, with bearish momentum sufficiently exhausted. The short-term moving averages below are forming strong support. This pullback is just a normal correction within the upward trend, representing a phase of consolidation and adjustment, and the overall bullish trend remains unchanged.
In the afternoon, the market is likely to explore a bottom and then rebound to recover. The main trading strategy is to focus on buying on dips.

Short-term trading suggestion: Buy on dips around 4690-4708 in stages, with initial targets at 4738-4752. If the bullish momentum is strong and breaks above and stabilizes, then aim for 4775-4795. #黄金##金价##外汇黄金##现货黄金#