On Monday (July 20th), gold prices weakened slightly in early Asian trading, briefly falling below the $4,000 mark. Currently trading at $3,990.67 per ounce, a drop of approximately 0.6%. This fluctuation is not an isolated event, but a direct reflection of the escalating US-Iran conflict over the weekend. Oil prices jumped more than 3%, with Brent crude breaking through the $91 mark and WTI crude also reaching $84, both new highs since June 11, exacerbating global inflation concerns and reinforcing market expectations that the Fed will maintain high interest rates or even raise them.

In addition, the US dollar index strengthened slightly to 100.86, further pressuring gold prices. Under the dual pressure of geopolitical risks and macroeconomic policies, gold, a traditional safe-haven asset, is showing significant downward pressure. Overall, this flash crash in gold prices reminds the market that the performance of safe-haven assets is always closely linked to the macroeconomic environment. Gold may continue to face volatility pressures until the Federal Reserve's policy path becomes clearer and the direction of the Middle East conflict becomes more transparent.

Looking at the weekly chart for spot gold, last week's price was still suppressed by market fundamentals, resulting in a small bearish candle. Structurally, it continued the previous downward trend. Once the 4000 mark is confirmed to be breached, the downside potential will open up directly, making this support level a key focus this week. Currently, the short-term moving averages are in a bearish alignment, exerting pressure, and the MACD indicator has also broken below the zero line, indicating that the bears have a certain advantage.

Looking at the daily chart for spot gold, the upper Bollinger Band is currently trending downwards, while the lower band is flattening, indicating price weakness and a gradual test of the bottom. The hourly MACD golden cross is converging with decreasing volume, and the Stochastic Oscillator (STO) is correcting upwards, suggesting a short-term oscillating rebound, albeit with weakening upward momentum. The recommended trading strategy is to sell on rallies. Resistance: 4020-4030-4040; Support: 4005-3990-3980.

Disclaimer: The article is contributed by the market analyst from Binkex market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.