On the evening of December 30th, there are new developments in the Federal Reserve situation. Trump once again publicly criticized the current Fed Chair's performance, claiming there were serious errors in the headquarters renovation project, and even threatening to initiate legal proceedings. More explosively, he announced that a new Fed Chair candidate would be announced in January.

Since the beginning of the year, internal personnel adjustments and policy swings within the Federal Reserve have never stopped. This power struggle has been ongoing for over a year, and the market has long been accustomed to it. But every time such news comes out, its impact on the financial markets is clearly reflected in price movements.

Looking at the technical aspect of gold, the situation remains worth paying attention to. Recently, the selling pressure above was released in a concentrated manner, with the price dropping directly from the upper Bollinger Band to the middle band, completing a rapid downward correction. Now, all three Bollinger Bands are leveling out, with the middle and lower bands showing signs of upward movement, indicating that yesterday’s sharp decline is essentially a technical adjustment within the trend and has not changed the overall medium-term direction.

A single large bearish candle has completely swallowed the previous four consecutive bullish candles, bringing the price back to near the starting point from seven trading days ago. The power of this wave of selling is evident. The key now is whether this large bearish candle can continue to push downward—around 4300, which was previously tested, is a strong support. This area is not only the center of recent six trading days’ oscillation but also a clear area of high trading volume, which institutions are definitely watching.

From the daily chart perspective, the middle line of the Bollinger Bands now acts as short-term support, forming a symmetrical pattern with the previous trend. In terms of operation, the focus at this stage should be on opportunities to short during rebounds. After a sharp decline, divergence and oversold signals have gradually appeared. If a rebound occurs, first watch the 38.2% Fibonacci retracement level, which resonates with the 60-day moving average on the four-hour chart, roughly between 4394 and 4398; if it continues to rise, secondary resistance is locked in the previous consolidation area, around 4427 to 4430.

The short-term trading idea is: look for opportunities to short in the 4265 to 4280 range. If it breaks below, consider adding positions at 4255, with targets between 4425 and 4455. The logic chain here is that changes in Fed policy expectations drive market pricing, and technical support and resistance levels determine specific entry points.