The data landing causes a plunge! Gold loses key support, is a bearish frenzy beginning?

Affected by the US April CPI data exceeding expectations, gold experienced a volatile decline after an intraday rally. After the data release, market expectations for rate cuts significantly cooled, the dollar and US bond yields strengthened, and gold faced short-term pressure, causing a sharp drop.

From a technical perspective, the four-hour Bollinger Bands are opening downward, and after the price broke below the middle band support, it continued its weakness. The KDJ indicator has entered the oversold zone, indicating a short-term technical rebound may be needed, but the overall trend remains weak. The current price is still in a downward channel, with the lower Bollinger Band around 4650 providing short-term support, while the 4700-4710 zone above becomes a strong resistance level.

On the news front, inflation persistence exceeding expectations has further delayed market expectations for the Federal Reserve's rate cuts this year. In the short term, gold will still be constrained by rising real interest rates. However, under the high inflation environment, gold's anti-inflation properties still have long-term support. In the short term, it is recommended to adopt a sideways to bearish approach, focusing on the effectiveness of the 4650 support level, maintaining a light position, and avoiding chasing rallies or selling in panic.

Suggestions:
Buy in batches around 4630-4650 on pullbacks, if the pullback is strong, consider buying near 4600, with targets at 4700 and 4750.

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Operate at your own risk based on this. #Gate广场五月交易分享