7.13 Midday Gold Trading Midnight Market Review: Gold plunges in a cliff-like drop! The 4,000 level is in jeopardy—where do longs go from here?

Gold opened down sharply during the day, consolidated and trended lower in the Asian session. In the European session, rebounds lacked strength and turned back to a fall. During the US session, it accelerated into a crash, breaking through the key supports at 4,050 and 4,020 one after another. The low touched 4,000. Currently, it’s quoted around 4,013, with a single-day drop of over 100 points, as bears dominated the whole session.

From the news side, the US Dollar Index rebounded strongly and stood above high levels. Fed officials issued a flurry of hawkish remarks, leading the market to re-price rate-cut expectations. Combined with a rebound in global equity risk appetite, funds flowed out of safe-haven assets. Gold saw concentrated selling by long positions, and bearish fundamentals were getting fully digested.

From the technical side, on the 15-minute timeframe, the price has broken below the lower Bollinger Band. The MA moving averages are arranged bearishly. The 4,050 platform support has already been breached, and below that it directly tests the psychological level of the 4,000 whole-number mark. The MACD green histogram continues to expand, while the KDJ has entered the oversold zone. Although there is short-term demand for correction, the downtrend has already been established—any rebound is an opportunity to go short.

Trading reference: On rebounds, consider scaling into short positions in the 4,030-4,040 range, targeting 4,000 and 3,980. $XAUT