Gold Market Forecast and Analysis for Next Week

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This week, the gold market experienced a dramatic rollercoaster ride. Gold opened lower at $3999, then quickly rallied, with prices steadily rising to fill the gap. The upward momentum continued, reaching a high of $4245 towards the end of the week, seemingly unstoppable. However, the lifting of the US government shutdown crisis significantly weakened safe-haven buying, coupled with hawkish comments from several Federal Reserve officials. This double whammy triggered a concentrated sell-off, causing gold prices to plummet from their highs on Friday, hitting a low of $4032.

Since we provided accurate analysis and profited during the Asian and European sessions, we did not trade during the US session, successfully avoiding this market-driven volatility. Otherwise, we would have inevitably bought on the dip, resulting in losses.

From a technical perspective, the 1-hour moving average for gold is still turning downwards. If the 1-hour moving average forms a death cross and a bearish alignment, then the downside potential for gold will further open up. Gold has also formed a head and shoulders pattern on the 1-hour chart. If gold cannot hold above 4150 next week, then any rebound on the 1-hour chart will only form the right shoulder of the head and shoulders pattern. Therefore, next week's rebound will likely face resistance at 4150, presenting an opportunity to sell on rallies. I believe that after Friday's sharp drop, gold will likely rebound and correct on Monday, making the 4150 area a key resistance level to watch in the short term.

Recently, inappropriate remarks by the Japanese Prime Minister regarding the Taiwan Strait have strained relations between China and Japan. As the situation escalates, this will inevitably lead to increased geopolitical conflict. As a safe-haven asset, gold, after Friday's sharp drop, will likely rebound to a relatively high level. Therefore, I believe there is a very high probability of a significant rise next week, potentially breaking above $4200 again.

In summary, the short-term trading strategy for gold next week is clear: buy without hesitation after the market opens, with buy orders at 4080-4100, top-up orders at 4130-4150, and long-term orders at 4050-4060. The long-term strategy is: buy orders at 4080-4100, top-up orders at 4250; these can be held until the end of the month.

I share accurate gold market analysis daily, but the advice here has a certain time lag. If you agree with my analytical approach, you need to find a method to adapt.

19 jam lalu

Dagangan aktif

Friday's sharp drop in gold prices presented a good opportunity. We need to not only determine the direction of our purchases but also identify good entry points. Based on my analysis in the article above, I believe these are things that can be predicted in advance.