4015 can go long, 3990 is bullish if not broken

As expected, gold continued its strong upward momentum, breaking through the 4,000 mark in the Asian session and nearly reaching 4,040. But from the news point of view, gold has now come to a critical moment. According to information revealed by U.S. Senator John Thune, the Senate will vote again on two short-term appropriations bills on the 8th and discuss the progress of the government shutdown. This will be the Senate's sixth attempt to pass a temporary spending bill to end the federal government shutdown. The previous government shutdown sparked market panic, leading many investors to flock to the gold market. If the government can be reopened this time, it will effectively alleviate risk aversion and cause gold prices to correct. On the contrary, the impact of continued closures and geopolitical factors may even cause gold to rise again.

Judging from the current gold trend, a new upward channel has been formed. Our trading strategy still focuses on long gold and short gold as a supplement. Then we should first focus on the small support of 4015-4010. When it falls back to here for the first time, we can try to go long with a light position. If it breaks, stop loss in time and pay attention to the important support of 4000-3900 to go long on gold. But it is worth noting that we must be wary of the possible rise and fall of gold today. The first reason is whether the US government shutdown issue can be resolved. The second reason is that China’s holiday is about to end. As a major gold holder, once it returns, the impact on the market will definitely be significant. On the upside, focus on the channel resistance level of 4050-4060. If gold rises near this resistance level, consider shorting it appropriately based on market conditions.

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