Gold: Watch 4228 as the Short-Term Pivot, Focus on Buying DipsUnder the influence of the FOMC’s 25bp rate cut yesterday, gold surged toward the 4248 area with significant volatility. Now that the rate-cut decision has been finalized, the conditions for trading purely on that expectation have passed; however, its subsequent impact will continue to create opportunities in the market. The series of economic releases before the holidays still deserve close attention. At the same time, developments in the Russia–Ukraine situation should be monitored. If peace negotiations progress smoothly and tensions ease, safe-haven demand for gold will weaken, putting short-term pressure on the bullish side.
Technically, fueled by news, the price broke through resistance near 4228 and tested the 4245-4250 area, but encountered significant selling pressure, returning to the 4207-4200 area. This trend is relatively healthy, but it also indicates that the market remains cautious.
Continue to focus on the 4223-28 area. If it can stabilize at this level, it means that the selling pressure has been largely released. With increased capital participation, there may be an opportunity to test the 4300 area before the holiday. If it cannot stabilize, and the Russia-Ukraine peace talks proceed smoothly, the bears may push the price down to around 4100 or even 4050.
Additionally, there is some data to watch in 7 hours.
