What's happening with gold? How should we view it?

At the Jackson Hole Global Central Bank Annual Meeting, Powell, in a break from his usual stance, expressed pessimism about the job market and shifted monetary policy from a "wait-and-see" approach to an "adjustable" approach. Influenced by Powell's stance, gold prices surged, soaring from around 3320 to around 3380.

From the perspective of the news, first, the Federal Reserve is highly likely to cut interest rates; a delay does not mean an end. A 4.5% interest rate is not a good thing for the current US economy. High corporate financing and personal borrowing costs are a serious drag on the US economic recovery, and gold's narrative is shifting from a safe-haven asset to a global currency anchor.

Second, gold hasn't yet entered a downward trend; it's merely a temporary pause. Holding gold offers not only a profit from price arbitrage but also, more importantly, a strategic asset allocation strategy.

Market Analysis:

Currently, focus is on the support level of 3360-3350. If it breaks below, the next support level is around 3345. This indicates that the upward momentum driven by last Friday's news has been released, and the bullish momentum is nearing completion.

Please note that the early Asian session's gains are unlikely to sustain the bullish trend. If the 3360-3350 level falls, it's time to adjust your strategy and short gold. At 3345, consider a light long position to see if there's a rebound in the European and American markets.

Wishing you all a successful trading week.