7.9 Gold Strategy Morning Review: Gold Violent Washout! What Signal Is Hidden Behind the V-Shaped Reversal?

Yesterday gold staged a thrilling roller-coaster. During the day, it surged to 4133 before being suddenly smashed by shorts. Within just a few hours, it plunged over a hundred points, hitting a low of 4021 before stopping its decline. Just when the market was overwhelmingly bearish, bulls staged a strong counterattack late at night, forming a standard V-shaped reversal. The price has now recovered to around 4075 for consolidation. The battle between bulls and bears is extremely intense, with obvious washout characteristics.

From a fundamental perspective, the recent fluctuating expectations of the Federal Reserve's interest rate cuts, combined with the intermittent tension in geopolitical situations, have been the core drivers behind gold's sharp swings. The short-term abnormal movement of the US Dollar Index directly triggered this waterfall decline, but market sentiment quickly recovered subsequently, with safe-haven buying re-entering. It is important to be cautious: the current fundamental landscape is mixed with bullish and bearish factors, and any slightest development could trigger a new round of violent fluctuations.

From a technical perspective, on the 15-minute chart, gold has formed a phased double-bottom support around 4021, with strong rebound momentum. The price has now returned above the middle Bollinger Band, and short-term moving averages are turning upward, indicating signs of bullish repair. The key resistance area above is 4090-4100; if broken, it could regain upward momentum. The support below is in the 4047-4050 area; if lost, it will test the previous low again.

Operation reference: Sell in batches on rebounds to the 4080-4100 range, targeting 4050 and 4020. $XAUT