Yesterday, gold faced resistance at high levels and broke down sharply, falling significantly. During the Asia-European session, it remained in a narrow range with weak consolidation, and market trading sentiment was subdued, with no momentum for bulls to mount a comeback. In the US session, supported by strong US economic data and hawkish Fed expectations, the dollar index and US Treasury yields continued to rise, causing gold to plunge from the 4512 level with increased volume, repeatedly breaking through multiple key support levels, with a low of 4351. A slight technical rebound occurred at the close, ending at 4379. The daily chart shows a large volume bearish candle, indicating a short-term bearish momentum explosion. The bullish trend has been completely reversed, and the technical outlook has entered a one-sided downtrend channel.

This morning, gold briefly stabilized in the 4350-4360 weak support zone, but buying support at the lows was extremely weak. The single-sided decline is only a short-term pause, with the main focus on weak consolidation and preparing for a new downward move within the day. In the medium term, this round of high-level pullback is not a normal correction during an uptrend but a sign of trend reversal. The previous bullish core pattern has been completely dismantled, and bears now dominate the market. If the daily close cannot hold above 4420, the short-term bearish structure on the daily chart will be further reinforced. Next week, gold is likely to continue its downward trend and test lower support zones again.

Key resistance levels are concentrated around 4510-4490, which is the recent rebound high and a resonance point with short-term moving averages, serving as an important defense line for the bears. The secondary resistance is around 4455-4445, acting as a short-term intra-day resistance zone. Short-term support is at 4350-4360, corresponding to the intra-day low and weak support on the four-hour chart. Stronger support below is at 4300-4320, which is a critical test level for this round of decline.

Trading strategy should fully shift to a bearish mindset, mainly aiming to short on rebounds, decisively abandoning the idea of buying low. As Friday approaches the weekend, funds are likely to rebalance frequently, increasing market volatility. Risk control is essential, with strict stop-loss settings. Consider partial short positions in the 4455-4470 and 4490-4510 zones, with stops above 4435. Initial targets are 4350-4360; if broken, look for further declines to 4300 and below. If intra-day support holds above 4350, avoid blindly bottom-fishing; instead, take small positions to play the oversold rebound, exit quickly to realize profits, and avoid holding against the trend.