Market News Interpretation:

Gold opened with a bullish tone today, supported by optimism regarding the situation in the Taiwan Strait and positive US employment data. Additionally, the price broke through the recent consolidation range, signaling renewed strength that is likely to persist in the short term. However, geopolitical risks—particularly concerning the Strait—remain, and the price faces significant technical resistance. Therefore, until the overall trend clearly reverses, any rebound should be viewed as temporary; close attention should be paid to how the price reacts when hitting resistance targets. Key data to watch today includes the US Global Supply Chain Pressure Index for July and the US Wholesale Sales (MoM) for June. Based on yesterday's data and market expectations, these figures are likely to remain supportive of gold prices, maintaining a bullish outlook for the day. It is advisable to wait for the price to hit resistance at the 100-day or 200-day moving averages before considering a bearish play on a potential pullback.

Gold Price Analysis:

After breaking through key resistance yesterday, gold surged to the 4267 level, with an intraday volatility exceeding $200. Based on the daily and hourly charts, the outlook has shifted to bullish for now, though the memory of the prolonged weakness seen previously remains. Intraday price action may see sentiment-driven extensions; with the 4300 level already breached, the next target is likely the 4370–4380 zone. This area marks the breakdown point from early June and a resistance level from the mid-June rebound; the 20-week moving average (4390) is also nearby. Consequently, even with the current sentiment-driven surge, the rally is highly likely to stall in the 4370–4400 range. Since the rally began during yesterday's European session, the price has surged relentlessly with few significant pullbacks. Given the continued market sentiment today, substantial retracements are unlikely; any significant pullback might be reserved for the release of the US Non-Farm Payrolls data on Friday. Based on the hourly chart, watch for price action around the 4265 level during the session; as long as this level holds, the prevailing market sentiment remains extremely bullish. Key support levels for gold today are at 4250 and 4220—consider going long on pullbacks to these support zones—while key resistance lies in the 4350–4380 range.

Regarding trading strategy: look to enter light long positions if the price stabilizes after pulling back to the 4250–4240 range, targeting 4300–4310; a breakout above 4310 opens the way to 4340–4350. For aggressive traders, short positions could be initiated with a light volume once the price first touches the 4340–4350 resistance zone and shows signs of facing selling pressure, with a target of 4300.