On Wednesday in Asian trading, the US dollar index retreated from its high to 101.3, easing the dollar's previous downward pressure on gold prices. US Treasury yields also declined slightly, reducing the cost pressure of holding gold as a non-interest-bearing asset. Spot gold fluctuated around 3950, primarily consolidating at a bottom. The market remains focused on the results of the US midterm elections, interpreting the subsequent fiscal and debt policy path. The election results will directly impact dollar volatility. Market analysts believe that if the Democrats control both the House and Senate, policy implementation will be more difficult, potentially suppressing the dollar and benefiting gold. Conversely, a divided government would ease fiscal constraints, making the dollar more resilient. The latest data from the World Gold Council shows that global central banks made net gold purchases of 321 tons in the third quarter, the fastest pace since the end of 2024, with physical buying providing bottom support. However, the council lowered its full-year forecast for gold investment demand, reflecting weak speculative participation. Commerzbank points out that the previous 3.7% single-day drop in gold prices and the nearly 7% monthly drop in October largely priced in the expectation of a December rate hike by the Federal Reserve. However, after the Fed kept interest rates unchanged last week, long-term yields have fallen, suggesting an overshoot in this round of decline, and the medium- to long-term bullish logic has not disappeared. Currently, the weakening dollar provides support, but market pricing in a rate hike has not fully subsided, and bullish funds are adopting a wait-and-see attitude. Gold prices have not yet formed a sustained rebound momentum and are mainly consolidating within a range. On the daily chart, gold prices are in a consolidation phase, trading below the 100-day moving average and the Bollinger Middle Band. The medium-term trend remains weak, but downward momentum has clearly weakened. The RSI remains around 36, near oversold territory, indicating that buying support is gradually emerging after selling pressure has subsided, highlighting the consolidation pattern. The first resistance level is the Bollinger Middle Band at 4080, with strong resistance at the 100-day moving average at 4205. The key support level is the lower Bollinger Band at 3900, a crucial support level for this consolidation. Holding above 3900 will maintain the consolidation pattern, while a decisive break below this level would indicate a failed bottom and a renewed push from the bears. On the 4-hour chart, the price action is converging, moving averages are intertwined, and the trading range is narrowing, indicating a balance between bulls and bears – a typical bottoming pattern. Short-term volatility is decreasing; the boost from a weaker dollar has only provided a minor correction and is unlikely to break through the resistance levels directly. Short-term resistance is at 3970, and short-term support is at 3900. Before a breakout from this range, the market is expected to continue its bottoming process, and we need to wait for fundamental signals to confirm the validity of the bottom. Editor's Summary : The dollar's decline has eased short-term negative pressures, and coupled with continued central bank gold purchases, gold has entered a consolidation phase, but this bottoming process is not yet complete, and a reversal cannot be confirmed prematurely. The current core market contradiction is the offsetting effects of suppressed interest rate hike expectations and dollar uncertainty stemming from the election, against previous overselling and support from central bank physical buying. A range-bound approach is recommended in the short term, observing the strength of the bottom around 3900 support, and focusing on whether the 4080 resistance level can be held. Before a clear breakout, excessive aggressiveness is not advisable. Closely monitor the US midterm elections, US Treasury yields, and the subsequent dollar movement, and be wary of rapid breakouts driven by news.