7.6 Evening Thoughts: A Single-Day Plunge of 66 Points Bounced Back from the Bottom! Gold's Direction for Late Night Has Been Set

Intraday gold opened with a continued strong trend, surging to an intraday high of 4202. After hitting the key resistance level, upward momentum quickly faded, triggering a unilateral decline. The decline expanded further in the afternoon, hitting a low of 4136, a retreat of over 66 points from the intraday high, with bulls and bears completing a rapid intraday switch. In the evening, buying funds gradually entered at low levels, initiating a recovery from oversold conditions.

From a news perspective, expectations for a Fed rate cut in July are divided. The US dollar index strengthened in the short term, putting continued pressure on gold prices. Combined with concentrated profit-taking at highs, this was the core driver of the current sell-off. Market sentiment gradually eased in the evening, with bottom-fishing funds stepping in to support prices, driving a rebound.

From a technical perspective, the 10-minute level has broken below the short-term upward trend line. Short-term moving averages have turned downward, forming resistance, and the short-term bearish pattern has not yet changed. Oversold oscillators are now recovering. The key resistance above is in the 4165-4170 range, while support below is initially at the intraday low of 4136. A break lower would see further declines to the 4130-4100 area.

Trading reference: Sell short in batches on rebounds in the 4160-4180 range, targeting 4130, 4100, and 4070. $XAUT