5.26 Early Morning Gold Sharing by Zaoze

Yesterday, gold overall fluctuated little, maintaining a small range sideways throughout the day, with the Asian and European sessions oscillating back and forth around the 4550-4580 zone, neither bulls nor bears showing a clear continuation. Due to the US market being closed last night, trading volume in the market significantly decreased, and the overall market was relatively dull, mostly showing a high-level sideways correction trend.

However, coinciding with the US stock market holiday, market activity was insufficient, and the upward momentum was noticeably weakened. This morning, the US launched strikes against southern Iran, while also stating that this move does not mean a ceasefire or the end of hostilities.

From a technical perspective, the current Bollinger Bands have clearly contracted, with the upper and lower bands continuously narrowing, indicating that short-term volatility will further compress. Currently, the price is close to the middle band, and neither bulls nor bears are showing obvious signs of exerting force. In this environment, blindly chasing orders carries higher risk, and sticking to the range-bound strategy is more prudent.

Gold can dip back to around 4505-4520, with targets at 4560-4580, and a breakout above that could reach 4600!