5.12 Midnight Gold Review: CPI Surprise! Gold Plunges Off a Cliff, Breaks Below 4680

Market Review: The US April CPI data released tonight exceeded expectations, with inflation stubbornly high, causing the US dollar index to rise to 98.37. Gold came under heavy pressure, plunging sharply from the intraday high of 4773, with a low of 4638, currently quoted at 4662, down more than 1.5% for the day, with the key support level of 4680 effectively broken.

Market Analysis: The 4-hour chart shows gold prices breaking below the 7, 20, and 90-day moving averages, establishing a bearish trend; the 1-hour moving averages are arranged in a bearish pattern, short-term indicators are oversold, indicating a slight technical rebound is possible, but the rebound momentum is weak, and the overall trend remains bearish. Inflation data reinforce expectations of rate hikes, continuously suppressing gold's upward potential.

Trading Suggestions: Light short positions on rebounds to the 4680-4690 range, with a stop loss at 4710, targeting 4640-4620; if the pullback stabilizes around 4638, consider short-term long positions, with a stop loss at 4617, targeting 4670, strictly controlling position size.

Disclaimer: The above is only a market opinion share and does not constitute investment advice. Investment decisions should be made independently based on your own risk tolerance.