Bulls are strong, gold hits 4,000 this week!
Gold continues its strong bullish trend this week, and the bullish outlook remains unchanged. Trading strategies should adhere to the principle of buying on dips and avoid guessing the top. Gold has now broken through the 3,900 mark, with the 4,000 mark as a potential upside target. From a cyclical perspective, we expect continued unilateral gains in the early part of this week (Monday and Tuesday). Be wary of a shift to a volatile upward trend or a reversal in the midweek (Wednesday and Thursday). Friday is likely to see a corrective rally, but if a midweek reversal occurs, there could be a risk of a sharp correction on Friday. Maintain a trend-following trading strategy.
Technically, gold maintains a healthy upward trend along its short-term moving average on the 4-hour chart. The bottoming out during the US trading session has completed the technical pattern, building momentum for further gains. Although prices are currently fluctuating at high levels, a new high is almost certain to occur, as similar patterns have repeatedly broken through recently. Even if prices remain in a narrow range at high levels, there is a high probability of a direct upward move at the Asian open tomorrow. Looking at the 1-hour chart, gold prices are temporarily consolidating at high levels, but smaller technical indicators are showing signs of a certain degree of divergence. This suggests a continued period of high-level volatility and strength in the short term, and we should watch for opportunities for bullish entry after pullbacks. The overall technical structure remains solid and supports a bullish outlook.
Gold Recommendation: Continue buying on dips back to 3945-3940, with a target of 3970. As long as it doesn't fall below 3900, you can continue buying! Gold will reach 4000!
