7.7 Afternoon Thoughts: Early Morning Plunge of 50 Points! Gold Bounces Off Lows, 4130 Determines Intraday Direction

In early trading, gold prices surged to 4168 before quickly facing pressure, experiencing a cliff-like decline, dropping more than 50 points in a short period, hitting an intraday low of 4116. As bearish momentum was released intensively, gold prices then staged a rebound, now recovering to around 4131 for consolidation. The short-term bulls and bears have entered a critical battleground.

From a technical perspective, on the 10-minute chart, prices broke below short-term moving averages and quickly tested lower, with the Bollinger Bands opening downward, indicating that the overall bearish pattern remains unchanged. However, short-term indicators have turned up after entering oversold territory, suggesting a need for technical rebound repair. The key resistance above is the 4148-4150 area, while support below is the 4116-4120 range. For today, we can first observe the strength of the rebound, and after facing resistance, there is still room for further decline.

Trading Reference: Rebound to the 4140-4160 range for phased shorting, with targets at 4120, 4100, and 4080. $XAUT