Yichen: Weakening Dollar Fuels Gold's Surge! Sharp Rally Crushes Bear Defenses

From a technical perspective, gold prices have strongly broken through the middle band of the Bollinger Bands on the four-hour chart and are steadily approaching the upper band. Short-term moving averages are in a bullish alignment, providing solid support for gold prices. Although the KDJ indicator is at elevated levels, it continues to diverge upward, indicating robust bullish momentum. Short-term pullbacks appear to be consolidation rather than trend reversal.

On the news front, Middle East geopolitical conflicts continue to escalate, Hormuz Strait shipping risks intensify, and global risk-aversion sentiment is at unprecedented highs. Large amounts of capital are flowing into gold seeking safe-haven protection, which is the core driver of gold's rally. Simultaneously, market expectations for Fed rate cuts in June continue to build, putting pressure on the dollar index to weaken, further amplifying precious metals' upside elasticity. If the upcoming U.S. initial jobless claims data comes in weaker than expected, it will directly strengthen rate-cut expectations, pushing gold prices to break through the $4,600 mark and opening larger upside potential.

Suggestions:
Buy in batches near 4455-4485, targets 4580, 4640, breakout at 4700, aggressive entry can be staged buy near 4500

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Any operations based on this are at your own risk. $XAU