The strong pattern of the gold market continues, and prices continue to break through historical highs. This strong upward trend has become the new market norm, reinforcing investors’ optimistic expectations. However, as gold prices continue to climb to new heights, market sentiment is tinged with a touch of caution, with some investors becoming uneasy about the excessive short-term gains and fearing the possibility of volatile fluctuations.
Although there have been technical pullbacks recently, the pullbacks have been relatively small and have not changed the upward trend. In the current clear, one-way upward trend, a rational trading strategy aligns with the primary trend, viewing each pullback as an opportunity to enter long positions on dips rather than a sign of a trend reversal.
Judging from the 4-hour chart, the current key support area is around 4000, which is an important watershed for judging the strength of the short-term trend. Trading strategies recommend buying on pullbacks, patiently waiting for prices to fall back to support levels before buying. Be wary of high-level volatility and avoid frequent trading during periods of uncertain direction.
