5.14 Early Morning Gold Analysis

Yesterday, gold surged then pulled back, reaching a high of 4726 during the session before encountering strong resistance. The bullish momentum weakened, and prices continued to fluctuate downward, with a low of 4669. The session ended with prices consolidating near the middle of the Bollinger Bands, around 4688, with a temporary balance between bulls and bears.

U.S. unexpectedly high inflation data severely damaged expectations for rate cuts, triggering a sell-off in high-valuation tech stocks; combined with escalating geopolitical risks, capital rotation, and phased loosening of industry logic, this collectively triggered a chain reaction of adjustments across the global tech sector.

From the 1-hour chart, the downward trend is very evident, with rebounds repeatedly pushed back by moving averages above. Recently, the candlestick bodies are mostly larger in the bearish (black) candles than in the bullish (white) candles, indicating clear selling pressure. Short-term downward momentum may be waning, with a technical rebound likely needed.

Gold retracing to around 4650-4665 is expected to support, with a target of 4720-4750.