Gold Technical Analysis: Yesterday, gold exhibited a dramatic V-shaped reversal. It dipped to a low of 4065 during the session, then surged to the 4265 level where it faced significant selling pressure and pulled back sharply. After testing the key support at 4025, a surge of buying interest drove a strong rally, resulting in a daily close of 4244 with a solid, full-bodied bullish candle, signaling a concentrated release of bullish momentum.

It is important to note that this week's Non-Farm Payrolls (NFP) report is still pending; data stronger than expected could rapidly shift interest rate expectations and exert downward pressure on the current rally, meaning the fundamental outlook remains subject to change. Overall, the short-term trading strategy for gold favors going long on pullbacks and going short on rallies. Key resistance levels to watch are 4300–4330, while key support levels are 4200–4180.

Gold Trading Strategy Reference:

Short Position Strategy:

Strategy 1: Initiate short positions (betting on a decline) in batches near 4300–4310, allocating 20% ​​of the position size; set stop-loss at 4330; target 4250–4230, with a potential further drop to 4210 if the level breaks.

Long Position Strategy:

Strategy 2: Initiate long positions (betting on a rise) in batches near 4200–4210, allocating 20% ​​of the position size; set stop-loss at 4180; target 4250–4280, with a potential further rise to 4300 if the level breaks.