Gold rebounded from yesterday’s low of 3983.55, showing strong resilience and very strong continuity—making it quite puzzling. Was the prior day’s 100-point long bearish candle line also a “digging a pit” move? By the time of the gold US evening session, when the U.S. released the CPI data, the mystery was finally revealed. Many funds were betting that the U.S. CPI data would be bullish for gold and silver, but near-term rate hikes by the Federal Reserve are unlikely. After the U.S. CPI data was released, gold surged by $74 in 5 minutes from $4027.70, with the high reaching $4101.97. Worth noting is that $4101.97 is only $2 away from the prior day’s high at $4103.64—yet in the face of such a strong positive catalyst, it still couldn’t break through.

Even more bizarre is that in today’s early session, gold fell across the board and retraced, yet it managed to achieve a seamless “match” with yesterday’s price. Gold dropped back to around 4030, and all of last night’s impulsive upside move was wiped out.

This phenomenon indicates that the impact of news on gold prices is short-lived, while the underlying technical logic has a longer-term effect.

Gold on the daily chart shows a bearish consolidation pattern. On the 4-hour timeframe, the bullish signals have not changed. The switch point between bulls and bears is around 4010. Although yesterday’s gold night session produced a strong rebound, today’s early-session upside “benefit” has been fully given back. Based on comprehensive analysis, the trend is bearish, and we should wait for the 4-hour bearish signal to appear.

Because yesterday’s news affected and altered the 4-hour technical roadmap, today during the daytime we will wait for the 4-hour cycle to turn and produce a sell/short signal before entering again.