7.29 Gold early session market observations

In the Asian market early session, gold prices continue the weakness from the previous night. The current price is around 4020, trading in a narrow range at low levels. The market is pricing a more hawkish interest-rate outlook in advance: US Treasury yields and the dollar remain at elevated levels. With less appeal for non-yielding precious metals allocations, and as geopolitical safe-haven demand cools off, longs are taking profit and exiting in clusters after building up at higher levels. A bearish structure is confirmed in the short term as the daily candle closes red. Early-session trading is quiet, and both bulls and bears are on the sidelines, waiting for the overnight policy decision to land after midnight.

The upside is constrained in the 4050-4070 range in the short term, while 4115 is the strong resistance level for this phase. Key support is located lower at 4000 and 3980. Global central banks continue to allocate to physical gold, so there is limited room for a large, deep selloff. The 4000 level is the short-term pivot between bulls and bears; once it is effectively broken, it will open more downside space.

Early-session reference ranges:
1、For a rebound 4050-4070, with a defense above 4090; targets 4000 and 3980;
2、For a pullback 3980-4000, with a defense below 3960; targets around 4060.
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