The wind is at your back! Next week, avoid blindly chasing trades in gold

On the technical side, after a deep correction earlier, gold prices have rebounded from a low of 4657, stabilizing above the lower Bollinger Band, with the KDJ indicator forming a bullish crossover at low levels, indicating sufficient short-term rebound momentum. However, the Bollinger Channel is still trending downward overall, and the medium-term weak structure has not reversed. There is strong resistance in the 4720-4740 range, with a key resistance at the 4767 upper Bollinger Band.

On the news front, global geopolitical risk aversion continues to support gold’s bottom resilience, while market expectations for the Federal Reserve to cut interest rates fluctuate repeatedly. The strength of the US dollar will continue to suppress gold’s upward potential. Coupled with rising global economic uncertainties, gold’s safe-haven attributes provide underlying support, locking in a downward plunge.

Next week, the market is likely to first experience an oversold rebound, then face resistance and pull back, maintaining a range-bound oscillation overall. Do not blindly chase gains or losses. Light positions can be held on dips for a bullish view, while high positions facing resistance should focus on shorting, with an emphasis on controlling the wave rhythm.