Will gold continue to rise strongly next week?

3 days ago

Review of recent trends:
The gold market showed a significant reversal this week. Following last Friday's consecutive negative declines, gold prices rebounded strongly this week, rising for five consecutive days and quickly recovering lost ground.
After falling from 2710 last week to 2536, prices rose again this week, indicating that market sentiment is changing rapidly, especially driven by geopolitical factors.
Fundamental impact:
Geopolitical tensions: The Russia-Ukraine conflict and the escalation of tensions on the Korean Peninsula are key factors driving the rise in gold, and rising demand for safe havens is the main driving force behind the surge in gold prices.
Korean Peninsula: North Korean leader Kim Jong-un said he currently faces the risk of nuclear war, which intensified the market's risk aversion and pushed gold prices higher.
If these uncertainties continue to ferment, gold may break through the $2,800 mark before the end of the year.

Technical analysis:
Daily K-line chart:
A golden cross appears on the daily chart, which is a typical bullish signal and there is still room for growth in the short term.
Five consecutive positive lines indicate that bulls have strong momentum, and the price has broken through the central axis of 2690, and may continue to test higher prices upwards.

4 hour chart:
The trend shows a stepped slow bull shape, with shocks running upward.
Both Stochastic and MACD are in golden cross status, showing continued upward momentum.
Key pressure ranges: 2750-2760, 2790. If these pressure levels are exceeded, gold prices may rise further.
Support range: 2700-2690. If the price pulls back here, strong support may be formed.
Operation strategy:
Retracement to go long: If the gold price pulls back to around 2710, you can consider going long, with targets at 2728, 2740, and 2756.
Shorting on rebound: If the price rebounds to 2728, 2740, 2756, etc., you can go short in these areas.
Support zone operation: If the price falls back to around 2706, 2700, and 2692, you can go long in batches and use the support level to find entry opportunities.
Outlook for next week:
Gold's short-term trend remains bullish, especially on the technical front, with a golden cross and upward momentum showing the potential for continued gains.
In terms of fundamentals, geopolitical risk factors still have a greater impact on the market, and gold is expected to continue to be the first choice for safe-haven funds.
The key price ranges for next week are: support level: 2700-2690; pressure level: 2750-2760, 2790. If it breaks through to the upside, gold may challenge the high of $2,800.
In general, the short-term trend of gold next week is bullish, but we also need to be wary of price shock adjustments near key pressure levels.

3 days ago

Trade active

1. Market overview

On Monday in Asia, gold prices experienced a sharp correction, falling by more than $60 during the day, hitting a low of $2,658. Gold's closing price last Friday was around $2,715. It reached as high as $2,720 at the opening today, but then suffered a strong sell-off, creating greater downward pressure. The current pullback is mainly affected by the uncertainty of the situation in the Middle East, especially the discussion between Hezbollah and the United States and Israel on the 60-day armistice agreement.
Although a deal is close, market sentiment remains cautious, with the gold market reflecting this uncertainty, leading to increased price volatility.

2. Technical analysis

price trend
Gold prices have retreated from a high of $2,715 to the current $2,658, forming a more significant downward trend. From the technical chart, gold prices are still in the head and shoulders bottom pattern formed on the 4-hour chart. This pattern usually indicates that the market may reverse upward. However, the left shoulder and head position of the head and shoulders bottom pattern have been confirmed, but the construction of the right shoulder part is still in progress. Future trends need to focus on the support near $2,650.

support and resistance

Support level:
Gold's current key support level is near $2,650, which is determined based on the 618 retracement level of gold's rise from $2,535 to $2,720. In technical analysis, the 618 retracement is considered a strong support area. If the price can stabilize above $2,650, gold may still continue its upward trend.
Resistance level:
Upside resistance in the short term lies in the $2,715-2,720 area, and if gold prices can break above this level, it may continue to test higher price ranges. However, the current short-term decline remains under pressure, so caution is needed before breaking out of this range.
Pattern Analysis The current gold price trend has formed signs of a head and shoulders bottom. Despite gold’s pullback from $2,720 to the current level of $2,658, the 4-hour chart still shows the potential to form a right shoulder. If gold prices can find support near $2,650 and stabilize upward, this pattern could develop further and become a bullish reversal signal.

3. Operation suggestions

According to current technical analysis, the key support level for gold prices is near $2,650. This position determines whether gold can continue its upward momentum in the short term.
Operational suggestions:

Long strategy:
If the price of gold can stabilize above US$2,650, it is recommended to consider entering long positions near 2,650. The target price can focus on the short-term resistance range of US$2,715-2,720.

Stop loss setting:
In order to control risks, if the price of gold falls below the support level of $2,650, stop losses should be considered to avoid greater downside risks.

Short selling strategy:
If the price of gold continues to decline below $2,650 and falls below the important support range, you can consider a short-term short-term strategy, with the target looking at the support area near $2,610-2,600.

4. Summary

The current gold market has formed a key support level near $2,650, and there is still upside potential on the technical front. If gold can hold above $2,650 and break through short-term resistance, it may continue to move higher, forming a complete reversal of the head and shoulders bottom pattern. However, if the price falls further below $2,650, there are still downside risks in the short term. Investors should pay close attention to the break of the $2,650 support level and adjust their operating strategies accordingly.