Gold prices surged yesterday, testing the $4300 level before encountering resistance and retreating. Currently, prices are consolidating around $4250. The earlier weaker-than-expected ADP data boosted gold prices, with the market anticipating weaker employment expectations. Tonight's non-farm payroll data will be a key short-term indicator. If the non-farm payrolls remain weak, rising expectations of interest rate cuts will support gold prices; however, if the data improves, profit-taking by bulls could lead to a deeper correction in gold. A slight rebound in US Treasury yields and a stabilizing and strengthening US dollar are somewhat suppressing gold's upward momentum.

The daily chart shows a candlestick with an upper shadow, indicating that the bulls encountered resistance after the initial surge. While prices remain above short-term moving averages, the current upward trend has not yet reversed, but bullish momentum at higher levels is gradually weakening, and the market is entering a consolidation phase after the initial rise. The $4290-$4300 resistance level is strong, and a breakthrough in one go is unlikely in the short term.

The short-term support/resistance level is 4260. Holding above this level maintains the bullish structure, and gold prices are expected to challenge previous highs again. Continued pressure below this level indicates a correction, opening up further downside potential.

Support levels: 4220-4225, 4200-4205

Resistance levels: 4260-4265, 4290-4300

In summary, gold is consolidating at high levels today, with market trading cautious and all funds awaiting the non-farm payroll data release tonight. The trading strategy should prioritize buying on dips to support levels, with short positions at resistance levels as a secondary approach. Consider buying in the 4220-4225 support zone and shorting on rallies to the 4260 resistance zone.

The above views are for reference only. Real-time market updates will be provided during trading hours.