This week's gold market experienced a significant reversal, with the overall trend shifting from bullish to bearish, forming a weak pattern of rising then falling back. The weekly chart recorded three consecutive down days, completely ending the previous bullish trend. At the beginning of the week, the market was driven by optimistic sentiment regarding the US-Iran agreement, pushing gold prices higher and successfully breaking through the 4300 level. However, the turning point occurred on Wednesday when the Federal Reserve issued hawkish statements, directly damaging the gold bulls, with the price dropping 1.7% in a single day, erasing most of the gains made during the week. Later, on Friday, the cancellation of Swiss talks and the cooling of geopolitical risk aversion expectations further pressured gold prices, causing the market to weaken again and break below the 4200 level, ultimately closing at 4155, with a clear bearish pattern established.

Currently, the market shows a complete weakening of gold, with a short-term bearish trend clearly in place. The price lacks upward momentum and faces resistance repeatedly without effective breakthroughs. The highs are gradually declining, and the weak structure is fully formed. Technical indicators have all turned bearish: the MACD red bars are diminishing, green bars are expanding, and the KDJ indicator is in a death cross at high levels and continues downward. The moving averages are layered and suppressing the gold price, with persistent lack of buying volume during rebounds, presenting typical characteristics of declining volume during drops and shrinking volume during rebounds.

However, there are no signs of stabilization or a bottoming out. On the daily chart, all moving averages at various cycles are turning downward, with prices continuously hitting new lows. The overall pattern is a downward continuation with oscillation. Without significant positive news, the bearish market structure is unlikely to reverse. Although the 4-hour cycle shows slight oversold conditions, it only supports a temporary technical correction and cannot reverse the overall bearish trend. In the short term, the strong resistance zone is concentrated between 4210 and 4270, with 4121 being the key support/resistance boundary for next week. The short-term bullish correction has ended, and the market has returned to a bearish dominant rhythm. It is highly likely to continue oscillating downward, with trading strategies mainly focusing on shorting on rebounds.

Next week’s trading strategy remains bearish. Resistance levels to watch are around 4180 first, then 4220-4230. The former is seen as a short-term lower target or even a key level below 4100, while the latter is a strong defense zone for bears during short-term oscillations. In other words, if the price falls below 4230, it could mark the short-term bottom or new lows for next week; if it drops below 4180, there is still potential to test new lows, though the timeframe may extend. For support, the key level to watch is the previous low at 4025, which is likely to be approached or touched next week. Whether it can be broken directly depends on actual market movements, so it’s best to wait for a touch or a false break before entering long positions.