After the gold shock, there may be a chance to break below 4000
News：
Last Friday, the US released CPI data. The reported decline in the figure supports the Fed's interest rate cut, which is bullish for gold, pushing it as high as 4135. However, the overall gain was not particularly strong, with continued volatility due to the limited rebound in the data, closing around 4114.
Next week will be the Fed's interest rate decision. Next week is the Federal Reserve’s interest rate decision. A rate cut is a foregone conclusion, and the extent of the positive impact is already limited. The increase before and after the data is released is estimated to be small. Therefore, after the volatility, I am optimistic that the gold price will weaken and fall next week, and it may break below the 4,000 mark. The idea is to rebound and short.
Specifically:
After the double top of gold in 4 hours, gold still fluctuated back and forth under the pressure of the neckline of the double top in 4 hours. Although the CPI was bullish for gold on Friday, it did not allow the gold bulls to break through 4160. This shows that the gold bulls are still under pressure in the short term, and gold will continue to fluctuate in a large range. If gold cannot break through 4160 at the beginning of next week, it will still be bearish, and we will continue to pay attention to the support around 4000.
If gold is stimulated by safe-haven news next weekend or directly breaks through 4160, then gold bulls may start to fight back and continue to go long at that time.
Trading strategy:
Buy: 4135-4125, SL: 4145, TP: 4105-4080
