7.7 Evening Thoughts: Gold Plunges Over 50 Points Then Rebounds from Lows—Can the Recovery Continue?

During the day, gold exhibited a V-shaped pattern of surging, pulling back, and then recovering. It rallied to 4168 in early trading before succumbing to a sharp drop, as profit-taking by long positions concentratedly exited. The lowest intraday level reached 4116, with a maximum decline of over 50 points. Subsequently, buying gradually stepped in at lower levels, and gold prices oscillated higher, with short-term long-short battles entering a white-hot phase.

From a technical perspective, on the 10-minute chart, gold prices quickly recovered part of their losses after dipping, showing the support effectiveness of the 4116-4120 area below. The Bollinger Bands transitioned from opening to narrowing, and the oversold rebound momentum remains. However, the 4145-4150 area above still poses strong resistance, and a trend reversal is hard to confirm without a clear breakout. Short-term movements tend toward a consolidative recovery.

Trading reference: Sell in batches on rebounds within the 4150-4170 range, targeting 4120 and 4100. $XAUT