Gold's performance yesterday was quite strong. It opened with a gap up and surged to a high of 4690.4, then encountered resistance and started to pull back. During the Asian session, it found support around 4653 and entered a consolidation phase. In the European and American sessions, the sideways pattern continued, with the US session bouncing to 4680.3 but failing to break higher. It finally closed at 4670.8, forming a large bullish candlestick with a long upper shadow.

From the candlestick perspective, the body of this large bullish candle is quite full, indicating strong bullish momentum. The long upper shadow reflects selling pressure at higher levels—some traders taking profits at the top. But importantly, during the pullback, volume decreased, and the closing price remained firmly above a key level, confirming that the overall trend is still upward. Plus, with the global interest rate cut cycle starting in 2026 and central banks increasingly buying gold, these are strong fundamentals supporting gold's upward movement.

From the 4-hour chart, focus should be on the 4700 level to see if it can be broken; support below is around 4640-4650, and further down near 4612-4618, which is a critical zone. The trading strategy remains to buy on dips, as each decline offers an opportunity.

Specific suggestion: When gold retraces to around 4635-4645, consider building multiple long positions, targeting the 4670-4680 range.