Yichen: Dollar weakness assists! Gold surges violently, bearish defense line collapses completely

From a technical perspective, gold price strongly broke through the middle band of Bollinger Bands on the four-hour chart, steadily approaching the upper band of Bollinger Bands, with short-term moving averages forming a bullish arrangement, providing solid support for gold price. Although KDJ indicators are at high levels, they continue to diverge upward, indicating ample bullish momentum. Short-term pullbacks appear to be accumulating strength rather than trend reversals.

From a news perspective, geopolitical conflicts in the Middle East continue to escalate, shipping risks in the Strait of Hormuz are intensifying, global risk-aversion sentiment is at unprecedented highs, and large amounts of capital are flowing into gold seeking safe haven, becoming the core driving force for gold price increases. Meanwhile, market expectations for Federal Reserve rate cuts in June continue to build momentum, the US dollar index comes under pressure and weakens, 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, pushing gold price to break through the $4,600 level and opening a larger upside space.

Recommendations:
Buy in batches near the 4455-4485 pullback area, targets 4580, 4640, further breakout targets 4700, aggressive traders can buy in batches near 4500

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Risks from trading based on this are borne by the individual. $XAU