Gold is still strong, it's too early to decline!
On Monday, due to the closure of the US market, the volatility of the gold market was very low in the US market, fluctuating within a small range of 2905-2885. Large fluctuations collectively rose rapidly in the Asian market, but did not continue to decline after plummeting to $2880 last Friday. This means that the short-term rapid decline is not a signal of peaking, but only a high-level wash off and oscillation.
However, this morning's upward rebound continued, especially breaking through yesterday's high of $2905, proving that bulls still hold an absolute leadership position. The pullback of gold is a reversal in the overall direction, especially for physical gold players who need to not easily get off the market. They can reduce their positions appropriately but also have sufficient bottom positions. Once they get off the market, it will be difficult to get back on the market.
In one hour, after a bottom oscillation sideways, the gold price broke through the 2905-06 level and returned to the support point of 2890 in the morning. Since 2880, the low point has continued to rise and the high point has broken upwards. Therefore, as long as the bulls do not fall behind the support point of 2890, the upward direction will remain unchanged today, which is consistent with yesterday's blog post.
Today, I don't think there will be a big pullback if we take a long position. It's enough to get close to 2905-06, and we can even get on the road directly. Unless we fall back to the 2890 position in the European market, we will consider a backhand. Long positions are focused on $2925-30-35.
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