On December 23, international spot gold broke through a key resistance level at the start of the week, posting a single-day gain of around 80 points. The opening low was near 4,342, but by evening, prices surged to a high near 4,430. While light-position chasing on the breakout may yield profits, the overall trading strategy remains bullish, with pullbacks appearing unlikely. Lu Kaifeng refrains from speculating on potential corrections, as gold's momentum toward new highs is accelerating. The bullish trend is now unstoppable, with daily record highs expected. Whether traders opt for short-term scalping or hold onto earlier long positions for mid-to-long-term gains, gold's upward trajectory shows no signs of slowing. A rally to 5,000 before the New Year is not unrealistic, and given the intensifying market dynamics, even 5,000 may not mark the peak.
Technically, clear signals indicate the end of the pullback phase. Last week, Lu Kaifeng advised caution, recommending buying on dips. However, this week, the market may not offer such opportunities—traders should consider entering long positions at any time, adjusting positions lightly while managing risk. Treat this as a one-way rally: focus solely on longs and avoid shorts or overly aggressive trades. Such conditions present lucrative opportunities. On the daily chart, the bullish trend has resumed, with a golden cross signaling further upside. The candlestick pattern remains strongly bullish without significant reversal signals. Due to the Christmas holiday, market participation may thin, potentially softening gold's momentum later in the week. However, the 4-hour and hourly charts maintain a strong upward bias with no topping signals. Short-term strength may persist, reinforcing the bullish case—stick to buying on minor dips.
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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Investors should conduct their own risk assessments.
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