Gold Bearish Sentiment Fully Exhausted, Stabilizing and Rebounding from Lows

In recent days, after a significant decline, international gold has stopped weakening and has begun to gradually rebound. Gold prices continue to rise, approaching the key level of $4,600. The pattern of forming a bottom at lower levels is now very clear, with increasing buying interest at these lows. The short-term rebound trend is becoming more evident. Today, gold is likely to oscillate higher, with the main focus on whether it can break through the $4,600 resistance.

On the news front, the previously hawkish rate hike expectations from the Federal Reserve that had been suppressing gold prices are gradually weakening. The market is now beginning to anticipate future rate cuts. As the dollar and U.S. Treasury yields rose and then started to fall back, the pressure on gold to rise was significantly reduced. Additionally, the ongoing instability in the Middle East continues to drive safe-haven funds into the gold market. Central banks worldwide are also actively buying gold, supporting long-term demand and establishing a solid foundation for gold prices. This bottoming and rebound have enough support, making a sharp decline unlikely in the short term.

From a technical perspective, gold has completed its bottoming process in the $4,300–$4,350 range. The 4-hour moving averages are trending upward, indicating strong rebound momentum. Around $4,420, a significant short-term support level has formed, with multiple pullbacks quickly recovered, leaving little room for further downside. Currently, gold prices are steadily approaching $4,600, which is both a previous breakout point and a key resistance level. Breaking through this level could lead to further gains. Even if there is some short-term resistance, it would only be a correction within the rebound process and would not alter the overall upward trend.

Looking at today’s market, gold remains generally strong with oscillations, and it is likely to test the $4,600–$4,650 resistance zone. The trend will mainly focus on consolidating pullbacks and steady upward movement. Support below is at $4,420–$4,450; a stabilization after a pullback presents a good entry opportunity. Resistance above is at $4,550; once broken, the target can be extended to $4,650.

In terms of trading strategy, it is recommended to focus on buying at lows and following the trend, rather than blindly shorting against it. Strict stop-losses should be set to manage risk. The clear bottoming pattern and established rebound trend present a good opportunity to position at lower levels and wait for gold to continue rising and break through resistance.