Early trading saw gold fluctuate around $4670 without continuing yesterday's strong rally. Just yesterday, it hit a new high of $4690, but funds quickly took profits and exited, causing a slight pullback in the gold price. However, from the overall trend, the upward momentum remains intact.

Why do the bulls have such confidence? Essentially, several support factors have not loosened — the Greenland dispute, Middle East geopolitical tensions, and other risk points remain unresolved, leading to continued safe-haven inflows; global central banks' enthusiasm for gold purchases remains high, with the Chinese central bank increasing its gold holdings for 14 consecutive months, providing real demand support; the market still expects the Federal Reserve to start a rate cut cycle within the year, which is a long-term positive for gold prices.

In terms of trading strategy, focus on two key price levels. On the upside, watch the new high range of 4690-4700; if the price can stabilize here, it is likely to break through further upward. On the downside, 4660 is the first support, followed by 4640; holding these levels gives the bulls room to continue their push. Also, keep an eye on the US dollar index; a sudden strengthening of the dollar could temporarily suppress gold prices.

Do not rush to build short positions; the current trend remains upward. If the price pulls back to around 4660 and stabilizes, consider a small long position. If the price surges directly and encounters resistance at 4690-4700, a small short position can be tested with tight stop-losses to avoid being caught by high-level volatility.