Yichen: Weakening US Dollar Fuels Rally! Gold Surges Violently, Short Positions' Defense Line Completely Collapses

From a technical perspective, gold prices have strongly broken through the middle band of the Bollinger Bands on the 4-hour chart, steadily approaching the upper band. Short-term moving averages form a bullish arrangement, 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 accumulation rather than trend reversal.

From a news perspective, Middle East geopolitical conflicts continue to escalate, shipping risks in the Strait of Hormuz intensify, and global risk-aversion sentiment reaches unprecedented highs. Large amounts of capital are pouring into gold seeking safe haven, becoming the core driver of gold's rise. Meanwhile, market expectations for a Federal Reserve rate cut in June continue to build, putting pressure on the US Dollar Index and weakening it further, which amplifies 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 and push gold prices to break through the $4600 level in one move, opening much larger upside space.

Suggestions:
Buy in batches near 4455-4485 on pullbacks, targets at 4580, 4640, if broken see 4700, aggressive traders can buy in batches near 4500

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