Gold Prices Swing Back and Forth in Choppy Trading

On Tuesday, November 4, gold experienced a volatile washout session, with prices under pressure during the Asian and European sessions, declining to the 3,895 level before stabilizing and rebounding. During the U.S. session, prices first surged strongly to 3,970 before falling back again, resulting in a small bearish candle on the daily chart.

Yesterday, the emphasis was placed on the opportunity to go short after gold broke below the 3,919 level, looking for continued downside momentum below the 3,930 breakdown level, then buying long on a small stop-loss after a sharp drop to the 3,895 area, and finally looking for continued upside toward the 3,950 zone after breaking above 3,930. In practice, after gold broke below 3,919, it declined to 3,895 before staging a significant rebound, with the U.S. session testing 3,970 once again at its peak before pulling back.

In the short term, gold is easily influenced by news and prone to emotional trading patterns. The back-and-forth tug-of-war and choppy washout caused by news impacts is normal. Yesterday, the short position at 3,926 was successfully closed out, and following the upside after breaking above 3,926 was not too late. Overnight saw a second attempt to challenge the 3,970 resistance level, where it was blocked. This morning's session marked the third probe higher without a breakout, followed by a pullback. The early morning sharp rally was difficult to sustain, and the momentum to break above 3,970 was insufficient. Therefore, a short-term short position was initiated below 3,970 and has already been successfully closed. Currently, gold is trading around 3,938, with attention on the 3,920 area below, which marks the early morning starting point. Watch for a pullback to the 3,920 area for long opportunities.

Today's view: With resistance at 3,970 pushing prices downward, the short position has been closed. Next, focus on long opportunities above the 3,917/3,920 level, near the overnight late-session pullback low and the early morning starting point. Look to go long on dips approaching this area.