4.7 Mu Xin Gold Morning Review: Consolidation and Repair Phase, Key Levels Determine Bullish or Bearish Direction

Currently, gold has entered a consolidation and repair phase after a decline, with the overall structure still leaning weak. The positive effects of the market’s rate cut expectations have been priced in advance, combined with the phased stabilization of U.S. Treasury yields, which continues to suppress gold prices; additionally, there are no new escalation developments in geopolitical tensions, and market risk aversion sentiment is gradually cooling down. Gold fund inflow momentum is insufficient, and bullish strength has significantly weakened.

From a technical perspective, after a sharp decline on the 4-hour chart, prices are consolidating sideways, with Bollinger Bands continuously narrowing, and the market is waiting for a direction to be chosen; on the 1-hour chart, gold prices fluctuate around the 4660 level, with strong resistance near 4700, and the rebound highs are continuously moving lower, showing a weak rebound pattern, indicating a more sideways continuation rather than a trend reversal.

Overall, in the current consolidation pattern, the market is predominantly bearish, with 4700 and 4600 serving as key levels for bulls and bears. Until the price effectively breaks through this range, a cautious approach to going long is recommended.

Trading Strategy

Focus on shorting on rebounds, paying close attention to resistance between 4670-4720. Support levels are first seen at 4620 and 4580. If support is broken, further downside is expected; once the price effectively breaks below 4600, bearish momentum will accelerate, likely triggering a rapid decline. Long positions are only advised with light positions around 4580 for short-term rebounds. Currently, conditions do not support a trend-based long position. $XAUT