April 9 Morning Thoughts

On Wednesday, spot gold prices experienced intense volatility, with a single-day surge of $150 at one point. During the U.S. trading session, the market significantly retraced earlier gains, resulting in an overall pattern of opening high and then declining. The daily chart ultimately closed with a long upper shadow bearish candle.

Although the U.S. and Iran reached a temporary ceasefire agreement, the overall situation in the Middle East remains unstable. Coupled with sudden geopolitical events such as Israeli airstrikes in Lebanon and Iran threatening to restart the closure of the Strait of Hormuz, market risk sentiment fluctuated back and forth. This directly caused gold prices to plunge rapidly in the late trading session, giving back most of the gains.

After three consecutive bearish days on the daily chart, the downward momentum of the bears has gradually weakened. Indicators show RSI approaching oversold territory, and KDJ has formed a low-level golden cross, suggesting a short-term technical rebound is likely for gold prices.
Key support zone: 4680-4650
Strong defensive support: 4600

Trading Suggestions

Enter on dips around 4670-4690, with a target of breaking through 4750 to look for a move toward 4780.

Use the key support below to set stop-loss protections, and participate with a light position in batches to respond to volatile market conditions.