Gold Market Analysis
Today, gold has seen a clear rebound. However, at present, this appears more like a technical correction after a decline rather than confirmation that the trend has reversed.
This round of gains is mainly driven by an improvement in market sentiment, including easing geopolitical tensions, falling oil prices, and the warming of rate-cut expectations, which has pushed down U.S. Treasury yields and encouraged short-term funds to flow back into gold. In addition, after consecutive declines in the prior period, bargain-buying at lower levels also further amplified the rebound.
That said, from the daily and medium-term structure, the bearish setup has not been broken. If the rebound cannot effectively break through key resistance levels, there remains the possibility of another pullback. The market is still largely driven by news, and volatility is expected to stay elevated. A rapid pullback after a spike and a subsequent “washout” cannot be ruled out.
Therefore, in my view, the trading approach should still primarily be “sell on rebounds”—waiting for price to rebound into the resistance zone to look for short opportunities is more cost-effective than chasing highs.
Today, gold has seen a clear rebound. However, at present, this appears more like a technical correction after a decline rather than confirmation that the trend has reversed.
This round of gains is mainly driven by an improvement in market sentiment, including easing geopolitical tensions, falling oil prices, and the warming of rate-cut expectations, which has pushed down U.S. Treasury yields and encouraged short-term funds to flow back into gold. In addition, after consecutive declines in the prior period, bargain-buying at lower levels also further amplified the rebound.
That said, from the daily and medium-term structure, the bearish setup has not been broken. If the rebound cannot effectively break through key resistance levels, there remains the possibility of another pullback. The market is still largely driven by news, and volatility is expected to stay elevated. A rapid pullback after a spike and a subsequent “washout” cannot be ruled out.
Therefore, in my view, the trading approach should still primarily be “sell on rebounds”—waiting for price to rebound into the resistance zone to look for short opportunities is more cost-effective than chasing highs.