On Wednesday (July 29), spot gold traded in a narrow range at low levels during Asian trading, currently trading at $4017.38 per ounce. At this crucial moment before the Fed's interest rate decision, international gold prices fell to a one-week low yesterday, with spot gold briefly dipping to $4011.54 per ounce before closing at $4028.42, a daily drop of 1.2%. Meanwhile, the US dollar index remained near a one-month high, oil prices fluctuated wildly due to conflicting signals of US-Iran dialogue and renewed tensions, and while bond yields fell slightly, they failed to change the overall high-level trend.

The gold market is at a crossroads of intense competition among multiple forces: on one hand, the heavy pressure from a strong dollar and expectations of interest rate hikes; on the other hand, the support from geopolitical uncertainty and lingering demand for long-term inflation hedging. This tug-of-war surrounding gold prices is far from over.

From a daily chart perspective, gold prices have failed to maintain their rebound this week due to the market already priced in hawkish signals from the Federal Reserve, instead falling back below the short-term moving averages. This indicates that the technical pattern still favors the bears. However, given the potential for increased reliance on indicators in the face of major news events, the MACD indicator is gradually approaching the zero line, offering little support. Therefore, before midnight, a strategy of buying low and selling high is recommended.

On the 4-hour chart, gold remains in a large range-bound trading pattern. We await tonight's Fed interest rate decision to see if Warsh can provide a turning point for gold bulls; otherwise, gold will likely continue to consolidate at the bottom. In summary, today's short-term trading strategy for gold is to primarily buy on dips, with selling on rallies as a secondary approach. Key resistance levels to watch are 4100-4120, while key support levels are 4020-4030.

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.