For retail traders who fully understand the current price range and driving factors of gold, the current fluctuation range of this precious metal is attractive. Although the price fluctuation range of gold is relatively narrow, recent market signals indicate that some large institutional investors believe that the commodity may be oversold. However, the shift in sentiment brought about by the pervasive tension in global markets has undoubtedly kept overall market trading cautious. But this caution may also be brewing new price momentum. Safe-haven demand props gold prices to high levels Recently, gold prices have repeatedly tested higher levels without experiencing a sharp decline, holding above short-term support levels—a phenomenon worth noting. The gold market is rife with speculative trading, with large institutions betting on short-term profits and price fluctuations. However, as always, many gold market participants firmly believe in gold's safe-haven properties. With global stock markets and government bonds currently experiencing volatility, gold becomes a highly sought-after asset should market sentiment turn cautious. Intriguingly, the US dollar has strengthened significantly in recent weeks, causing gold prices to fall accordingly, but they have still held firm within a solid support range. There are also indications in the past few trading days that some large gold market participants believe the upward momentum of gold prices may further strengthen. A stronger US dollar limits the strength of the gold rebound Buying power has rebounded somewhat in the past two days, but it's worth noting that the $4200 level has consistently failed to be broken effectively and sustainably. Last Friday, gold prices surged to nearly $4198, touching the highs of earlier this week, but the subsequent pullback was weaker than before. From a technical perspective, support levels have gradually risen, with $4160 being a key level. However, currently, safe-haven buying of the US dollar remains a resistance to gold's upward movement. The rapid decline in US stocks last Friday pushed the dollar stronger at the close, which could trigger a passive sell-off in gold. In the short term, the market is likely to continue its volatile trading pattern. The unclear medium-term direction is highly unfavorable for trend-following traders. The constantly shifting technical patterns and the wavering attitudes of large investors and financial institutions will continue to pose challenges for intraday traders. The $4160 support level will test buyer confidence. Technical traders need to closely observe whether gold's support level can hold. Short-term trading should use the US dollar and global stock markets as indicators of market sentiment. If the US dollar remains strong in the foreign exchange market, gold may continue its volatile trading pattern amid a safe-haven environment. However, behind the continuous erosion of overall market confidence lies a paradoxical possibility: if market sentiment is not merely fragile but descends into panic, gold will become a sought-after asset. If the $4160-$4150 support level holds, it will be a key signal, indicating that buying power will gradually accumulate. However, before that, gold prices need to break through and hold above $4200 to attract more bullish entries. Volatility remains a source of risk for short-term traders. Gold still offers plenty of trading opportunities, and a bullish outlook on gold prices is understandable. Historically, gold has long-term investment value. However, from a speculative trading perspective, the problem lies in the continued and significant impact of a strong US dollar. This means that gold prices will continue to fluctuate wildly, and unprepared day traders will suffer from the shocks of these sharp price swings. Risk sentiment will dominate gold's next move. Gold prices have held their highs in recent days, showing upward momentum. However, if US stocks resume their sell-off in the short term, it will spread to the foreign exchange market and bond yields, further exacerbating the uncertainty of short-term gold prices. Traders who like to capture technical reversals will find the current market environment full of opportunities, but they must manage risk effectively. Short-term outlook for gold. (Spot gold daily chart source: FX678) Gold prices are currently trading above $4150; despite the continued strengthening of the US dollar, the recent rebound has been maintained. If the price continues to break through $4185, it may target $4205, increasing the probability of retesting the $4200 resistance level. Conversely, if it breaks below $4165, the short-term technical structure will weaken, and the focus will shift down to $4145. The interplay between dollar buying demand and global safe-haven holdings may determine which price level will be breached first.