Jin Yuancan: Today's Gold Market Analysis and Trading Recommendations

On December 22, the gold market continued its upward momentum from the previous week, displaying a volatile pattern of initial gains, followed by a pullback and subsequent recovery. The weekly chart closed with a spinning top candlestick, setting the stage for today's price action.

In detail, gold opened the week at 4,300.1 points, with bullish momentum quickly driving prices up to a weekly high of 4,351. However, profit-taking triggered a swift retreat, pushing prices down to a low of 4,371.1 (likely a typographical error; the actual low should logically be below 4,351, reflecting a pullback before the rebound). Later, bulls regrouped, reigniting the rally and pushing prices to a new weekly high of 4,374.5 on Thursday before entering a consolidation phase. By the week's close, gold settled at 4,338.6, forming a spinning top with a slightly longer upper shadow.

Technically, the spinning top suggests a balance between bulls and bears, signaling a pause in the prior one-sided rally and a potential short-term consolidation or accumulation phase. Last week’s sequence—initial breakout, pullback to test support, and final recovery—highlighted this tug-of-war. The weekly close at 4,338.6, near the midpoint of the weekly range, neither confirmed a continuation of the uptrend nor triggered a deeper correction, offering critical context for today’s directional bias.

Given last week’s price action and current market conditions, today’s trading strategy favors bullish opportunities. Key recommendations include: - **Entry**: Long positions near 4,310. - **Stop-loss**: Set at 4,300 (a key support level near last week’s open). - **Targets**: Initial resistance at 4,340; if breached, extend to 4,352 (last week’s early high).

The 4,300 level provides strong support, justifying the stop-loss placement, while 4,340 and 4,352 represent prior resistance zones and logical profit-taking areas for bulls.

*Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Trading carries risks; investors should exercise caution.*