Gold prices surged sharply on Friday, August 10, driven by the powerful catalyst of the non-farm payrolls data, which triggered one of the year's most explosive bullish runs. The July US non-farm payrolls figure significantly underperformed market expectations, directly pressuring the US dollar and Treasury yields lower, while simultaneously pushing gold higher. This led to a rally that peaked at the short-term high of 4371 during Friday's session. However, as it was the end of the trading week, the market experienced substantial profit-taking, causing prices to slip into a volatile decline. Consequently, the daily chart closed with a bullish candle featuring a prominent long upper wick. On the weekly chart, the sustained upward movement throughout the week resulted in a solid, robust bullish candle, with the overall weekly gain approaching 7%. From a medium-term perspective, the bullish breakout pattern is now firmly established.

The weekend brought a lull in international news, with no significant geopolitical conflicts or major monetary policy decisions to further disrupt market sentiment. As a result, Monday's opening session was relatively subdued. Although gold prices opened slightly higher, the short-term upward momentum was insufficient. This is primarily due to concentrated profit-taking by early-stage short-term bullish investors. The accumulated bullish energy from the previous continuous rally is now showing signs of gradual exhaustion, leading the market to transition from a clear uptrend to a phase of technical consolidation and adjustment after the sustained advance.

From a technical perspective, the daily chart remains structurally supportive of the bulls. The continued upward movement has solidified the bullish foundation, with the Bollinger Bands still maintaining an expanding upward trajectory. Short-term moving averages remain in a standard bullish alignment, and the medium-to-long-term uptrend structure has not yet been materially damaged. However, negative short-term signals are accumulating. The long upper wick on Friday's candle, combined with the weak Monday morning decline, has pushed the daily RSI indicator to stay above 78, indicating a state of severe overbought conditions. Concurrently, the MACD histogram's red bars are beginning to contract, signaling diminishing upward momentum. The risk of a bearish divergence at the higher highs is likely intensifying.

In summary, the current market has entered a typical contradictory pattern. The medium-term bullish direction remains intact, with no signs of a reversal. However, after the rapid rally, various technical indicators are showing overbought conditions, and bullish positions are beginning to loosen. The market now exhibits a strong need for technical correction. Therefore, short-term trading strategies must account for the potential for a pullback and correction, with a key focus on avoiding the uncontrollable risks associated with chasing prices at higher levels.

Today's trading strategy reference: The four-hour and one-hour charts clearly illustrate the current market rhythm. The previously steady upward channel has stalled, with prices failing to create new highs. The short-term upper highs are progressively declining, indicating that bears have temporarily taken the upper hand. The key short-term resistance zone is now identified between 4350 and 4370, which serves as the primary resistance area for any intraday bounce. For bulls to regain control and challenge the next upside targets of 4390 to 4400, they must first reclaim the 4370 level. However, if prices continue to trade below 4350, the corrective pressure is likely to extend further. With short-term technical indicators turning weak, the unilateral bullish market has temporarily concluded. The market is expected to gradually shift into a phase of high-level consolidation and distribution.