Enze: Gold prices plummeted nearly 150 in a single day! Hawkish Federal Reserve triggers a bearish market

On Thursday during Asian and European trading hours, gold prices sharply dropped from 4797 to 4648, a nearly 150 decline in one day, and market sentiment cooled.

The main driver of this decline is the shift in Federal Reserve policy expectations. Ongoing tensions in the Middle East pushed oil prices up to 107, reigniting inflation pressures. Market expectations for rate cuts in 2026 have been significantly lowered, with the timing of rate cuts likely postponed until after September. The 10-year U.S. Treasury yield rose to 4.39%, and the US dollar index broke through 109 strongly, greatly increasing the opportunity cost of holding gold, leading to a large-scale withdrawal of funds from precious metals and a surge into dollar assets.

Key levels to watch
Resistance: Short-term resistance at 4700–4720, with stronger resistance at 4740–4760. Rebounds are viewed as shorting opportunities.

Support: Focus on the 4640–4630 range; if broken, the next support is at the 4600 psychological level.

Trading strategies
Short: Gradually build short positions in the 4700–4720 range, targeting first 4660–4650; if broken, target 4630–4600.
Long: Do not blindly bottom-fish; only consider light long positions after stabilizing at 4630–4640, with targets at 4680–4700.

Note:
The above analysis is Enze’s personal view. Markets are volatile and change rapidly. This content is for reference only and does not constitute any investment advice!