XAU Gold Silk Exposure Strategy

The situation in the Middle East remains tense, with Trump sending a tough signal to Iran. Market concerns over escalating conflicts persist, and the demand for gold as a safe haven remains. However, last week’s non-farm payroll data exceeded expectations, increasing the likelihood that the Federal Reserve will delay interest rate cuts further. The dollar and U.S. Treasury yields remain high, putting pressure on gold prices. On one hand, safe-haven sentiment provides support; on the other hand, high interest rates create pressure. Currently, bulls and bears are in a tug-of-war, and the short-term market is likely to remain in a consolidation and correction pattern, making a clear directional move difficult.

From a technical perspective, the 5-minute chart shows that after the price dipped to a low of 4616 in the early session, it rebounded and is now oscillating around 4644. The MA5 and MA10 moving averages have turned upward, and the price has moved above the moving averages. The KDJ indicator has formed a golden cross at a low level and is trending upward, indicating weakening short-term bearish momentum and increasing bullish momentum. After testing and stabilizing around the 4620-4630 range, consider a light long position with targets at 4660-4690.