Yichen: The oscillation conclusion is not the end! Next week, choose the direction for gold directly

This week, gold maintained a high-level oscillation to close, with the price fluctuating around the middle band of the Bollinger Bands, and the four-hour Bollinger channel narrowing and leveling off, with prices stuck in a narrow range between 4730-4800. The KDJ indicator is moving neutrally across three lines, with a short-term turn downward, and the bullish and bearish momentum are temporarily balanced, showing obvious signs of consolidation and buildup at high levels.

Over the weekend, geopolitical uncertainties still remain significant, with risk aversion sentiment in the Middle East region repeatedly intensifying, coupled with the ongoing escalation of the Federal Reserve's rate cut expectations, which continues to heat up the market’s risk aversion buying. This provides strong support at the bottom for gold prices. The previous resistance at the 4857 historical high remains effective, and short-term bullish breakout faces resistance.

Next week, focus on speeches by Federal Reserve officials and economic data related to inflation, with technical levels closely watching the Bollinger upper band pressure at 4800-4826, and key support at 4700-4730. Until the range is broken, it should still be treated as a range-bound oscillation; a valid break of the upper or lower band will directly trigger a new round of trend in one direction.

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Operate at your own risk based on this. $XAU