Yichen: Weakening Dollar Provides Support! Gold Surges Violently, Short-side Defenses Completely Collapse

From a technical perspective, on the four-hour chart, gold price has strongly broken through the middle band of the Bollinger Bands and is steadily approaching the upper band. Short-term moving averages form a bullish alignment, providing solid support for gold prices. Although the KDJ indicator is at a high level, it continues to diverge upward, indicating ample bullish momentum. Short-term pullbacks appear to be consolidation rather than a trend reversal.

From a news perspective, geopolitical conflicts in the Middle East continue to escalate, maritime risks in the Strait of Hormuz intensify, and global risk-off sentiment reaches unprecedented levels. Large amounts of capital have flowed into gold seeking safe haven, becoming the core driver of gold price increases. Simultaneously, market expectations for a Fed rate cut in June continue to intensify, causing the dollar index to come under pressure and weaken, further amplifying the upside elasticity of precious metals. If the upcoming US initial jobless claims data comes in weaker than expected, it will directly strengthen rate cut expectations and push gold prices to break through the $4,600 mark in one move, opening up greater upside space.

Suggestions:
Buy on pullbacks near 4455-4485 in batches, target 4580, 4640, if broken look for 4700, aggressive traders can buy in batches near 4500

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Risks taken based on this information are at your own responsibility. $XAU