Spot Gold Morning Review: Shorting at Highs, Short-term Pullback in Play

The market's frantic rally has finally shown signs of pressure. After hitting a record high yesterday, spot gold experienced a sharp pullback. In an extreme bullish trend, short-term correction needs have become prominent. The risk of chasing highs is already high, and shorting at high levels has become the preferred strategy for short-term trading. Grasping technical correction opportunities within the trend is the key to current trading.

From a news perspective, the core driver behind yesterday's gold price surge has shown signs of change. Trump signaled easing on Iran issues, coupled with the market's risk aversion cooling off ahead of the Federal Reserve's January rate decision. The bullish funds that entered the market on safe-haven sentiment began to take profits, directly causing the price to fall from its high. Although global trade protection signals and potential geopolitical risks still provide long-term support for gold, the short-term profit-taking after positive news and fund rebalancing amid overbought conditions are enough to trigger a technical correction, creating an opportunity for short positions at high levels.

Technically, the daily chart shows a long upper shadow candle, forming a typical high-level resistance pattern. The RSI remains overbought, the MACD red energy bars are shrinking, and bullish momentum is clearly weakening, indicating a short-term correction signal. On the 4-hour chart, the price has effectively broken below the short-term upward moving averages. The lower boundary of the high-range oscillation zone at 5100 has become a key dividing line, while the 5180-5200 USD region above forms a strong resistance zone, representing a dense area of profit-taking after the previous high. The high-level pullback trend has begun, and rebounds are good opportunities for short entries.

In terms of strategy, focus on shorting at high levels, gradually building short positions near the 5180-5200 resistance zone. Targets are set around 5140, 5120, and 5100!!

This is only a personal suggestion for reference. Please follow Cheng Jingsheng's layout for precise trading!!$XAUT