Yichen: Gold has fully exploded! The 4500 level has been broken, and the bullish trend is irreversible!

From a technical perspective, the four-hour V-shaped reversal pattern is clear, with gold prices stabilizing above the middle band of the Bollinger Bands at $4474.59. The KDJ indicator's three lines are diverging upward simultaneously, with the J value entering a strong bullish zone. Coupled with increased volume, the rebound momentum is abundant.

On the news front, US economic data continues to weaken, and market expectations for a Fed rate cut in June have sharply increased. US Treasury yields and the US dollar index are weakening in tandem, directly reducing the holding costs of gold. Additionally, the ongoing tension in Middle Eastern geopolitics, with persistent risks to energy supply in the Strait of Hormuz, has intensified. The phased correction in US stocks has triggered a risk-avoidance demand, leading to a comprehensive reassessment of gold’s safe-haven and inflation-hedging properties, making it the core driver of gold price increases.

Recommendations:
Buy on dips around 4420-4440 in batches, aggressive traders can buy near 4480, with targets of 4550, 4600, and a break to look for 4700.

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Operate at your own risk based on this information. $XAU