Yingying Market Watch: Today gold is very weak, and the 1-hour chart has completely lost its momentum.

From the price movement, it surged to 4642 in the early hours and then started to fall. The lowest point touched 4581, followed by a rebound to 4593. The overall rhythm is a rise followed by a fall, with no opportunity for long positions. The short-term moving averages are already aligned in a bearish formation, and the bulls have no strength left to fight back.

**What does the fundamental analysis say?**

The US dollar index is rebounding strongly, boosted by the better-than-expected January University of Michigan Consumer Sentiment Index data. The expectation of Fed rate cuts has cooled down, and as the dollar appreciates, it naturally puts pressure on gold. Additionally, the geopolitical conflict in the Middle East has not escalated further, and the risk aversion sentiment has significantly diminished, weakening buying support. There is also bad news — the world's largest gold ETF holdings have decreased by 3.2 tons, with institutions reducing their positions, making market sentiment more cautious.

**What about the technical analysis?**

Key support at 4600 has been broken. During the decline, trading volume increased, indicating strong bearish momentum. The Bollinger Bands are opening downward, and the gold price is running along the lower band. The rebound tested the middle band but did not break through. The MACD is still in a death cross, and although the KDJ shows oversold signs with a potential turn, a golden cross has not yet formed.

The resistance levels are at 4600 and 4619. Support below is at 4581; if this level is broken, the next target is 4571.

**Trading strategy:** When the rebound reaches the 4615-4625 area, it’s time to sell. The initial target is 4580, further down to 4560.