After rising for over a dozen consecutive trading days, gold prices entered a relatively quiet period this week. Monday continued the strong momentum of last week’s non-farm payroll report, with prices rising strongly after breaking through last week’s high of 3600, rebounding to above 3640. On Tuesday, after a sharp rise to a record high of 3674, gold prices quickly pulled back, retracing over 30 points to around 3640. Wednesday’s opening saw a rapid bottoming-out and rebound, reaching a low of 3620 before resuming its rally. Yesterday’s trend clearly indicated that upward momentum was gradually weakening. Yesterday’s intraday price action repeatedly tested the key resistance level of 3656-60 before encountering resistance and retreating. This resistance level is a key barrier for bulls to overcome. Once it stabilizes at 60, bullish sentiment will be reignited, and a subsequent breakout of the record high is only a matter of time. Conversely, if today’s CPI fails to drive gold prices significantly higher, a correction at the high level is highly likely from Friday through next week.
Today’s gold strategy: Buy long at 3615.
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