What's the outlook for gold next week? Strategy Update

10 hours ago

After Friday's sharp drop, gold may rebound at the beginning of the week, followed by a test of its strength. From a technical analysis perspective, the daily chart closed bearish, indicating significant downward pressure and strong short-term upward momentum. Monday's market is likely to remain bearish. Gold's rebound to around $4110-$4120 is a key resistance zone from the previous period and near the high of Thursday morning's rebound, making it highly likely to encounter resistance. Aggressive traders could consider a small short position, while more conservative traders should wait for a rebound to the $4140-$4150 range before entering short positions, as this is the upper edge of the previous consolidation range. Based on the current trend, key support is between $4050 and $40, with strong support at $4000. The previous low is at $3990. If this support level holds, the market may continue to consolidate. A break below this support level could weaken bullish sentiment.

Despite Friday's significant market volatility, our trading went very smoothly. I focus on short-term trading and clear market analysis. In short-term trading, there are no markets that rise or fall forever, only optimal entry points at specific moments. Finding the rhythm and following the trend is the essence of trading. On Friday, after the Asian market opened, we shorted at 4209 and then sold at 4190. Many friends questioned this, but I want to say, don't regret selling too early. We set profit targets and risk controls for every trade. Once the profit target was reached, we sold. After all, technical analysis becomes ineffective in the face of news. We should be grateful that we maintained four profitable short-term trades during this major market move, including both long and short positions, instead of missing the entire downtrend. You can check the historical recommendations to verify their accuracy. Although I am a professional trader, I don't need to strive to buy at the lowest and sell at the highest point on every trade. After all, I'm just a trader, not God! So we need to adjust our mindset and only earn the profits we deserve. Overall, this week's operations were quite profitable, and we will continue to work hard next week.

There's no need to panic excessively. I believe the bulls haven't completely lost control; this can be seen as a short-term pullback driven by fundamental factors. The possibility of a medium- to long-term peak in gold is unlikely; the overall bullish trend in the long term remains unchanged. The long-term bullish outlook persists because current external factors, such as geopolitical tensions, tariffs and trade tensions, the Fed's halt to tapering, and continued central bank gold purchases, do not support a medium-term peak in gold. Although the subsequent release of data following the US government shutdown may be mixed, potentially delaying the Fed's rate cuts, the overall trend of de-dollarization will not change. The current decline is merely a correction within the medium-term bullish trend.

This is just a general pre-market analysis; it will be updated based on actual market movements after the market opens. If you are unsure about precise trading strategies, try my method: first, use a small position to test the market, then add to your position during pullbacks. This way, you won't miss any opportunities. If you are truly unsure when, where, and how to trade, let's work together to flexibly and steadily pursue greater returns in the ever-changing market!

2 hours ago

Trade active

After the Asian trading session opened, gold rebounded slightly to the resistance level we previously mentioned, before falling back to $4080. In the short term, $4110 has formed effective resistance, consistent with our expectations. Investors who followed our advice to short at the open have already profited. If gold's rebound in the Asian session stops at $4110, the rebound will be extremely weak, and there may be room for further pullback. However, even if the rebound is slightly stronger, gold will still encounter resistance below $4140-$4150, forming a head and shoulders pattern on the 1-hour chart. Therefore, today's strategy remains primarily to sell on rallies, with buying as a secondary option. The above recommendations remain valid for the Asian session. We will update our trading recommendations for the European and American trading sessions based on the price movements during the Asian session. Updates may be delayed; please pay attention to our entry points to view real-time trading signals.