On Wednesday, June 25th, the gold market experienced a significant bearish sell-off, with the overall decline exceeding 150 points amid intense price swings. The price opened at 4113 in the early session, briefly climbed to the daily high of 4115 before quickly encountering resistance and reversing, initiating a strong downward trend. It continued to step lower, reaching a low of 3959. After hitting bottom, the decline slowed, and the market entered a phase of consolidation, with a minor rebound in late trading, ultimately closing the day at 4001. The international spot gold market extended its overnight weakness, with bearish momentum remaining dominant. In early trading, gold is hovering around $1,997 per ounce, after having plunged to a low near $1,959 yesterday, marking its lowest level in over seven months and decisively breaking below the key psychological $2,000 barrier. The current market is in a period of intense bearish pressure. While there is a slight technical need for a correction, selling pressure above remains heavy, and the overall market exhibits a weak, bottom-seeking pattern with a bearish bias.
Daily Chart Analysis: The daily chart shows a large bearish candlestick, with price firmly suppressed below the short and medium-term moving averages. The MACD lines are in a bearish crossover below the zero line, and the green histogram continues to expand, indicating that downward momentum has not yet exhausted itself.
Four-Hour Chart Analysis: The four-hour chart shows a pattern of breaking down in a step-like fashion. The previous support level at $2,023 has now completely transformed into a strong resistance zone. Against a backdrop where institutions have been lowering their short-term gold price forecasts and bargain-hunting sentiment remains weak, any short-term rebound is highly susceptible to renewed weakness. The immediate resistance is seen at $2,070. Today, selling on rallies below $2,050 remains a viable strategy.
Early Session Gold Trading Strategy: For short-term operations, consider selling on rallies towards the resistance zone of $2,030-$2,050. On the downside, a break below the support zone of $1,960-$1,930 could target the $1,900 psychological level. The primary strategy is to follow the downtrend. For specific entry, consider short positions in the $2,028-$2,035 range, with a stop-loss above $2,060, targeting $1,970-$1,960.
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