On the morning of June 9th, the market sentiment is deeply oversold and recovering from a sharp decline, with more positions being accumulated at low levels.

Yesterday, gold continued its weak sideways decline, influenced by rising expectations of interest rate hikes and market liquidity fluctuations, leading to a sustained weakening. Gold sector stocks and offline gold jewelry prices both plummeted simultaneously, with market bearish sentiment being fully released. However, after the price dipped, it rebounded slightly in the late trading session, showing strong support at low levels. After a large drop, the bearish momentum is severely exhausted, and the oversold correction demand is strong.

Looking at the current market, the overextension of the interest rate hike negative expectations has been overdone, and the fundamentals still have room for recovery. Coupled with geopolitical uncertainties and continuous gold purchases by global central banks, the medium- to long-term support for gold remains solid. Technically, the daily RSI has entered an oversold zone, the four-hour decline has slowed, and the hourly bottom has turned upward, indicating that a technical rebound could start at any time.

Trading Suggestions

Buy on dips around 4265-4270, with a stop loss at 4252, first target at 4350, second target at 4380.

Aggressive traders can go long with a light position if the price stabilizes above 4300, with a stop loss at 4288, and look to take profits $BTC at 4350.