Gold's performance today can be described as quite eye-catching. Starting from the Asian session, the price gently rose around 4715, and with continued bullish momentum, it clearly accelerated during the European session, ultimately reaching the intraday high of 4888. However, the rally didn't last long; the market faced significant selling pressure at this level, and the price then fluctuated around 4860, with bulls and bears temporarily at a stalemate. From the hourly chart, it is now a typical high-level consolidation pattern.

Why is gold so strong? Mainly due to a combination of several factors. First, the market is beginning to speculate that the Federal Reserve may cut interest rates in March, causing the US dollar index to weaken, which directly provides upward momentum for gold. Second, geopolitical tensions are recurring, risk aversion sentiment is rising, and funds are flowing into precious metals markets for bargain hunting, further pushing up gold prices. These two factors together explain why gold remains so strong.

But it’s important to note that the price encountered resistance at the key level of 4888. The long upper shadow on the hourly chart indicates considerable selling pressure above, and the bullish momentum is waning. In terms of gains, it has already risen nearly $170 in the short term. From a technical perspective, it’s time for a correction. The current high-level consolidation is essentially a tug-of-war between bulls and bears.

As for trading suggestions, the key is whether the market can break new highs before 9:30 AM during the US session. If it fails to break through for a while, consider shorting in the 4875-4880 range, with targets at 4840 and 4820. If it truly breaks new highs, then you can follow the trend and go long, continuing to look for upside. Overall, this level is indeed a dividing line, and the future market direction depends on how the US session unfolds.