Yesterday, spot gold showed a significant decline overall, with no strength to push higher during the day and continuing to weaken. Prices repeatedly broke below key support levels, closing lower at the end of the session, with overall bearish sentiment released. The daily chart closed with a large bearish candlestick, completely breaking the short-term oscillating upward structure. The bullish pattern has ended, and the market has entered a weak downward channel.

From the news perspective, U.S. employment data performed strongly, leading the market to lower expectations for Fed rate cuts this year. The dollar and U.S. Treasury yields continued to recover, putting sustained pressure on gold prices. Meanwhile, geopolitical risk aversion sentiment cooled down, and gold safe-haven buying sharply diminished, which was the core reason for yesterday’s sharp decline in gold prices. Today, the focus is on U.S. inflation data, which will directly influence short-term interest rate expectations and determine the subsequent volatility direction of gold prices.

Support: 4060-4070 (intraday lows), 4000 (psychological level)

Resistance: 4130-4150 (breakout resistance), 4200 (dividing line between strength and weakness)

Trading suggestions

Be cautious around the 4130-4150 range, defend above 4180, target 4080-4060, and watch for a break below 4000.

Stabilize near 4060 with a light long position, defend below 4030, target 4120-4150, and look for a breakout to the upside $BTC toward 4200.