Shanks Talks Gold: Gold Plummets from High, Shorts Continue

Today's gold market completely aligned with our bearish assessment from this morning, delivering a sharp decline. After opening, gold prices surged to 4500.54 briefly, then market sentiment reversed sharply, causing a waterfall-like selloff with lows touching 4443.46. As of press time, despite a minor rebound, prices remain near 4454, down over 40 points from yesterday's close.

Market fluctuations in Federal Reserve rate-cut expectations within the year are a major driver of this price action. Recently released economic data has been strong, weakening market bets on aggressive rate cuts, leading to a recovery in Treasury yields and a stronger dollar, directly pressuring gold prices. Additionally, the cyclical recovery in risk assets like US stocks has diminished gold's safe-haven appeal, causing capital outflows from the gold market.

From a technical perspective, gold prices encountered strong selling pressure after reaching the 4500 round number. On the 5-minute K-line chart, prices have continuously broken through multiple key support levels, forming a clear downtrend. Currently, the 4450 level provides temporary support, but rebound strength is weak.

If subsequent rebounds can break through the 4465-4470 resistance zone, gold prices may launch an attack toward 4480. Conversely, if the 4450 support breaks, the next key support to watch is 4430. Should this level also break, prices may further decline toward the 4410-4400 range.

For operations, we maintain our bearish stance from this morning, recommending mainly shorting on rallies. Optimal entry timing is to wait for rebounds to the 4465-4470 resistance zone to observe bearish signals before entering, with initial downside targets around 4430.

This article is merely a personal perspective sharing and does not constitute any investment advice. The gold market is highly volatile; investors should make independent judgments based on their own circumstances and bear risks accordingly.