Triggered by news regarding the reopening of the Strait of Hormuz, gold prices staged a strong rebound, hitting new highs; the price is currently fluctuating near the 4179.5 level. Although bullish signals emerged yesterday, the lack of an official announcement from either the US or Iran left the market skeptical, limiting the overall extent of the rally.

This morning, a flurry of positive developments materialized: the US plans to officially announce the reopening of the strait on Wednesday, Iran has permitted European participation in mine-clearing operations, and Qatar has drafted an agreement text between the US and Iran. These bullish factors drove a surge in gold prices; the price broke strongly through the 4100 level from 4065 this morning and accelerated, surpassing last Friday's high of 4120. This entire rally has been driven by market expectations of US-Iran reconciliation and the reopening of the strait.

Looking at the 4-hour chart, despite the rally driven by these expectations, overhead resistance remains significant. We are focusing on the 4186–4195 resistance zone, while watching the 4120–4125 range for short-term support and the 4090–4100 range for key support. Given that this market movement is driven by news, we are adopting a "wait-and-see" approach until the trend becomes clearer; our trading strategy focuses on shorting upon encountering resistance during rebounds.

Gold Trading Strategy:

1. Short gold in the 4180–4195 range; stop-loss at 4203; target 4120–4126; if the level breaks, look toward 4090–4100.