The era of 4300 is now a thing of the past, just like when we looked back at 3600 last year, it's completely unreachable now, as the gold bulls are overwhelmingly strong. Overnight at the start of the week, gold continued its gap-up opening and rally, soaring from its opening level of 4528 to a peak touching around 4630, marking a single-day gain exceeding $100. This ascent was punctuated by multiple minor pullbacks, which typically occurred during the latter parts of the European, Asian, and U.S. trading sessions, only to be followed by continued unilateral upward movement. This week's pattern may mirror last week's volatile uptrend, with consecutive gains on Monday and Tuesday, followed by minor corrective pullbacks on Wednesday and Thursday, before another assault on new highs on Friday. It is almost certain that gold's upward momentum has not yet peaked, and as the energy continues to be released, the next target is to challenge the key 5000 psychological barrier. Today's trading strategy remains to buy on dips, with the specific entry timing left to individual discretion. However, any long positions entered today should be considered short-term trades; stronger, more substantial long positions should be established later, awaiting the lower levels expected around Wednesday or Thursday.
For the current gold market, technical indicators have fully entered overbought territory. The bullish crossover signals observed on both the four-hour and daily charts show no signs of reversing the trend, and there is a complete absence of selling pressure from bearish energy. After a rapid surge, the short-term bias indicator appears slightly excessive, reducing the likelihood of immediate continued gains in the near term; a period of sideways consolidation at high levels or a price retracement is favored to complete the technical correction. On smaller timeframes, the price has shown minor signs of stabilization, and close attention should be paid to the short-term adjustment and recovery process. Currently, gold is being driven by fundamental catalysts, its bullish structure remains intact, and the trend maintains an extremely strong posture. The European session continues to exhibit a pattern of cyclical rises, making further gains today highly probable. Despite growing market apprehension about the high price levels, the price consistently maintains its strong upward rhythm, and short-term fluctuations do not impact the overall ascending trend; a breakout to continue the rally may only require a catalyst. Having firmly established itself above 4600, the next resistance level has now shifted higher to around 4930. In the immediate short term, it might face resistance around the 4700 psychological level. For now, focusing on resistance levels is advisable, while considering support levels is currently unnecessary.
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