Gao Bojing: Will Gold Open Lower and Continue Declining? Latest Gold Trading Strategies

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Gold Information – On February 2nd, the benchmark 10-year U.S. Treasury yield closed at 4.238%, while the policy-sensitive 2-year yield settled at 3.539%. Spot gold initiated its decline during the European trading session, plummeting dramatically by 12% at one point to around $4,680, marking its largest single-day drop since 1983. The day's trading range neared $770, completely erasing the week's gains, and it ultimately closed down 9.19% at $4,883.45 per ounce, resulting in a weekly loss of 2.2%. Spot silver plunged heavily by 35% to the $73 level, recording its largest single-day decline on record, and finally settled down 26.37% at $85.01 per ounce, suffering a steep weekly loss exceeding 17%. Spot platinum and palladium each closed with losses exceeding 17% for the day. On Monday, gold opened $90 lower, and silver opened $4.50 lower. Supported by ongoing tensions between the U.S. and Iran, oil prices remained near their highest levels in nearly six months. WTI crude oil experienced wide fluctuations around $65, eventually closing up 0.35% at $65.78 per barrel; Brent crude closed up 0.28% at $69.61 per barrel.

Latest Gold Market Trend – The gold market experienced violent swings last week driven by fundamental influences, with price movements of an epic, unprecedented scale. The week started with a slight gap higher, opening at $5,005.5 per ounce, then slightly retraced to fill the gap, reaching $4,987.5. Subsequently, propelled by safe-haven demand, prices surged strongly, accelerating into Thursday's early session to hit a historic peak of $5,600. After brief consolidation at these high levels, a wave of profit-taking triggered a sharp correction of 500 points. The decline accelerated further on Friday following the announcement of the new Fed Chair nominee, with the weekly low touching $4,683.3. A rebound from oversold conditions ensued, and the week ultimately concluded with a settlement at $4,883.2 per ounce, forming a weekly candlestick with an extremely long upper shadow resembling an inverted hammer. This closing pattern suggests continued adjustment potential at the weekly level. Comprehensive analysis summary: Gold's rally and subsequent retreat has formed a descending channel. If today's rebound fails to break above the overhead resistance, a continuation of the downward breakout is highly probable. For today's trading strategy, prioritize selling on rallies, with buying on dips as a secondary approach. Monitor resistance above at $4,950-$5,150 and support below at $4,698-$4,650.

Latest Crude Oil Market Trend – The U.S. crude oil market opened last week at $61.106 per barrel. Prices initially declined, finding the weekly low at $60.186, before staging a powerful rally to a weekly high of $66.537. The week concluded with consolidation, settling at $65.789 per barrel, forming a large bullish candlestick with a slightly longer lower shadow than upper shadow. This closing pattern indicates a potential for further upward movement. Comprehensive analysis summary: Following its surge, crude oil has opened lower to test support levels. For today's trading strategy, prioritize entering long positions on pullbacks, with selling highs as a secondary tactic. Watch resistance above at $64.6-$66.2 and support below at $63.0-$61.5.

Latest Nasdaq Index Trend – The Nasdaq Index market opened lower last week at 25,322.44 points. It experienced a slight dip to 25,265.35 before rallying to 26,221.73. A strong sell-off followed, and the week ultimately settled at 25,525.38, forming a weekly candlestick with an extremely long upper shadow, resembling an inverted hammer. This pattern suggests the index is currently trading within a range. Comprehensive analysis summary: The Nasdaq's advance encountered resistance, indicating a probability of further adjustment. For today's trading strategy, prioritize selling on rebounds, with buying on dips as a secondary approach. Monitor resistance above at 25,664-25,917 and support below at 25,350-25,250.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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