Gold Pressured at Highs, Consolidates: Selling Rallies at Resistance

1. Market Overview: Bullish Momentum Fades as Market Enters Consolidation

• Whipsaw Action: After peaking near 4,696.00 this week, gold faced significant selling pressure, pulling back to the 4,565.00 level, representing a total retracement of approximately 130 points. The previous one-sided bullish momentum has been broken. As investors lock in profits, the market has officially entered a high-level consolidation phase following the massive rally.

• Bull-Bear Tug-of-War: Early session bullish momentum was limited, failing to sustain previous strength. However, buying support emerged during the pullback, preventing a panic breakdown. The overall structure exhibits clear high-level range-bound characteristics.



2. Technical Analysis: Daily Upper Wick Signals Resistance, Defining Core Range

• Pattern Characteristics: The daily chart printed a candlestick with a long upper wick, directly reflecting heavy overhead resistance. Without fresh, strong fundamental catalysts, it will be difficult for bulls to immediately reclaim lost ground in the near term.

• Key Levels: The core overhead resistance is currently maintained at the 4,620.00 level. The key downside support is located near the recent pullback low of 4,560.00, which also served as the starting point of the previous rally.

3. Intraday Strategy: Trade the Range, Sell on Initial Rallies

• Sell on Rallies: Intraday operations should adopt a range-bound approach. If the price initially rebounds to the 4,618.00 - 4,620.00 zone, consider establishing short positions against this resistance, with a defensive stop loss placed above 4,630.00.

• Targets: The primary target for short positions is the 4,600.00 psychological mark. If the downward momentum continues, look further down toward the 4,580.00 level.

4. Risk Disclaimer

Financial trading involves unpredictable risks, including the potential loss of principal. This analysis is for reference only and does not constitute direct investment advice. Investors should make independent judgments based on their own risk tolerance.