Gold Market Analysis:

On Thursday（May 8）, during the Asian session, spot gold moved in a narrow range, trading around $3,375/oz at the time of writing. On Wednesday, gold prices fell nearly 2%, pulling back below the $3,400 level, with an intraday low of $3,360/oz before settling at $3,364.32/oz. The decline was driven by a stronger U.S. dollar and optimism around international trade talks. The market focused on the Fed’s decision to keep interest rates unchanged as expected. Fed Chair Jerome Powell stated that underlying inflation remains well-contained and that the Fed is not in a hurry to adjust rates, as the cost of waiting is relatively low. His comments triggered the dollar index's largest single-day gain in nearly two weeks, putting pressure on gold. However, buying on dips still provided support to gold prices.

According to the Bitop market analysis team, although the short-term pullback in gold reflects a reduced demand for safe-haven assets due to improving trade sentiment, the broader outlook remains neutral to bullish. Key technical support levels are still intact, and potential rate cuts or geopolitical uncertainties could renew investor interest. It is recommended to closely monitor the Fed’s tone and watch for developments from the U.S.-China meeting this weekend for the next potential catalyst.

Gold Technical Analysis:

On the daily chart, the current pattern is highly similar to the one observed around the Qingming Festival: after a sharp bearish breakout, a series of doji candles signaled consolidation, followed by a strong bullish candle confirming a bottom reversal, forming a classic “Morning Star” pattern. Notably, this rebound appears more stable than before—support at the middle band of the Bollinger Bands has held consistently, without re-testing the lower band, indicating stronger bullish momentum.

On the 4-hour chart, after a drop of over $70 yesterday, gold found support near the previous key level of $3,360, forming a double-bottom pattern. As long as $3,360 holds, a bullish bias on dips toward a renewed push above $3,400 remains valid. The current sideways movement between $3,360 and $3,400 reflects a typical consolidation following a strong one-sided rally. Such corrections often serve to resolve indicator divergence or absorb MACD’s downside momentum—what’s commonly referred to as “Using time to exchange for space,” paving the way for a new bullish .

For today's short-term gold trading strategy, buying on dips is recommended as the primary approach, with short-selling on rebounds as a secondary tactic. In the short term, key resistance is seen at the $3,397–$3,407 zone, while support is found at the $3,360–$3,350 zone.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.