Zong Xiaoli: Gold's second attempt to top out, can it still rise tonight?

As everyone has seen, gold suddenly made a strong rebound last Friday, forming a large bullish candle, giving a sense of optimism; and on Monday this week, gold continued to rise, approaching the previous high near 5091, again giving the impression that gold is about to break through a new high, further opening up upside potential, and that it will rise even higher in the future…

So, is this feeling correct? I advise caution!

Currently, although gold’s upward momentum is not insignificant and appears somewhat positive, we must recognize that the gold price bubble is indeed too large. The previous continuous surge was mainly related to futures delivery. After the sharp decline at the end of January, this bullish energy has basically been exhausted, leaving only some institutions and retail investors maintaining the position. If there are no stronger catalysts in the future, it will become increasingly difficult for gold to rise significantly, and the need for a pullback will grow. Therefore, despite the recent two days of strong gains, it is actually a second top-testing behavior. Once this top-testing is confirmed, gold is likely to decline…

Regarding tonight’s gold trend, I recommend approaching with caution. Be alert for small moves or tricks in the gold market, and try to confirm market intentions before taking action. Tonight, consider opportunistically shorting on rallies for reference!