Gold Market Trend Analysis: On April 27, gold experienced a continuous decline from its highs last week, undergoing a significant correction and a bearish washout. The downward momentum slowed by the end of the week, with prices gradually stabilizing and entering a phase of consolidation and recovery. The market is characterized by a tug-of-war between bullish and bearish forces, with underlying currents intertwining. Overall, gold has entered a brief period of accumulation, quietly awaiting the next directional move. The morning session saw a subdued pace, with prices seesawing around key levels. The US dollar maintains overall resilience, while expectations for a Federal Reserve rate cut remain unfulfilled. Coupled with a calming geopolitical landscape, multiple factors are balancing each other out, limiting gold's upside and downside potential. The market is moving back and forth in a gradual, step-by-step manner.
Reviewing last Friday's movement, gold opened near the 4700 level and maintained a range-bound对峙 pattern throughout the day. After a minor upward probe to 4711 in the early session, bullish momentum quickly faded, leading to subsequent pressure and weakness. The price retreated to a low of 4657 during the session, but solid support below restricted further bearish pressure, noticeably slowing the pace of decline. This morning, gold opened slightly lower near 4700. After a brief dip to 4672 at the open, ample buying interest emerged at lower levels, indicating that bearish momentum is exhausted and lacking follow-through. Subsequently, gold steadily climbed, oscillating higher to recoup short-term losses and firmly stabilizing above 4710, exhibiting a stable and orderly rhythm.
Following the previous period of sustained oversold conditions, the market has entered a healthy adjustment cycle. Signs of stabilization are becoming evident, with volatility turning milder and extreme, sharp swings no longer prevalent. The divergence between bulls and bears is gradually converging, and a short-term consolidation and bottoming pattern is clear. The market continues to accumulate energy through this consolidation, building momentum for a subsequent breakout. Currently, immediate strong resistance is concentrated around the 4740 level, while core support below is anchored in the 4660 zone. From an operational perspective, the strategy for the day favors selling on rallies. If gold initially rebounds into the 4735-4738 range, one might consider initiating short positions, with a unified stop-loss set above 4750. Short-term targets are set towards the 4700 to 4680 range, aiming to capitalize on the oscillating downward rhythm.
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