6/2 Morning Thoughts

Yesterday, gold ended its previous rally and moved into a correction phase with a pullback. Previously, driven by positive economic data, gold prices surged to high levels, but yesterday the market experienced a significant decline, with London gold falling more than 1.2% in a single day, closing around $4,483. The domestic market also weakened simultaneously, with gold T+D and Shanghai Gold main contracts slightly declining. Short-term market sentiment was dominated by profit-taking among bulls, ending the phase of a one-sided upward trend.

From a technical perspective, the daily chart shows a large bearish candlestick that engulfs part of last week's gains, forming an M-top correction pattern. The MACD green bars continue to expand, indicating increasing bearish momentum, and the short-term trend has shifted from strong to a consolidation correction.

Trading Suggestions
$4,445–$4,450, stabilize and consider short-term long positions, targeting resistance at $4,500–$4,520.
$4,515–$4,520, if the rebound does not break resistance, take light short positions with a view to a pullback to support at $4,460–$4,450.