2.2 Day Gold Morning
The sharp drop is not a trend reversal, but a healthy pullback after a significant rise, with a focus on buying the dip, avoiding chasing shorts and panic; the long-term bullish logic remains unchanged.
Last week, the spot gold experienced a sharp drop, mainly driven by profit-taking after the previous surge, combined with Trump's nomination of a hawkish Federal Reserve chair candidate, which cooled market expectations for interest rate cuts, and the stabilization of the dollar put pressure on gold prices.
The fundamental support is strong: global central banks have increased their gold holdings for 14 consecutive months, with 4750 being the average cost line for central bank gold purchases, providing solid support; the surge in physical gold purchases during the Spring Festival has created a strong demand base, further reinforcing support below.
The long-term logic remains unchanged: expectations for interest rate cuts, geopolitical risk aversion, and other core bullish logic have not fundamentally changed, and short-term fluctuations do not affect the long-term trend.
Gold prices have touched key support levels, with the RSI indicator entering the oversold range; short-term downward momentum has exhausted, and after the sharp drop, it is highly likely to enter a phase of consolidation and recovery, with clear rebound potential.
Core idea: buy the dip on pullbacks, refuse to chase shorts, and do not blindly follow market sentiment.
Lightly add positions near the 4800 range
First target 4960 break to look for 5000
Do not chase highs on rebounds; use pullbacks as an opportunity to add positions
In the short term, gold prices will mainly consolidate and recover, with clear ranges; this pullback provides a good opportunity for long-term positioning, and after the recovery is complete, gold prices are expected to return to the upward channel. $XAU
$XAG
