The investment market doesn’t simply move in the expected direction. The path to success is full of twists and turns. If you go the other way, you’ll lose your way and enter a cycle. The same is true for the market. The trend is certain, but it won’t simply continue in the predetermined direction. There will be twists and turns along the way that can shake people’s hearts. At these times, you need a positive mindset and not be swayed by short-term trends. This is why we’ve consistently positioned ourselves for swing trading and have been successful. Only by staying true to our original aspirations can we achieve our goals. The investment market requires perseverance and determination to reap the rewards!
Gold’s surge on Friday stemmed from growing expectations of a rate cut and concerns about economic risks. The core driver was the market’s pre-emptive pricing of the Federal Reserve’s policy shift, suggesting a possible early start to the easing cycle. This expectation has significantly increased gold’s appeal as a zero-interest, inflation-fighting asset. Focus will be on August’s non-farm payroll and CPI data. If the data continues to weaken, it will reinforce the case for a rate cut and provide medium- to long-term support for gold prices. Conversely, strong data could trigger a pullback in expectations, leading to price volatility.
Technical Trends and Trading Strategies: The gold trading strategy for next Monday will continue to prioritize buying on pullbacks. Primary support lies at the previous key resistance level of 3360-3345. This area is expected to serve as the first line of defense for bulls. Even a brief intraday break below this level would be considered a short-term technical correction. Key resistance above lies at the 3400 mark. A break above this level will be crucial in determining whether bulls can open up further upside and maintain the trend. Therefore, we recommend maintaining a bullish strategy for next Monday, positioning ourselves first and closely monitoring market trends.
