🔥Gold Trading Strategy for Next Week✅

Based on the current market situation and technical analysis, the strategy for gold trend next week can be as follows:

1. Short strategy
Since gold has been strong recently and closed above $2414 on Friday, it may rebound to the $2420-2430 range after the opening next week. You can try to short in this range:
Opening range: $2420-2430
Stop loss position: set near $2435 , with a small stop loss point
Target position: short-term target can be set in the range of $2395-2397

2. Long strategy
Although the main strategy is short-selling, you can consider going long when the price falls back to the key support level:
Pullback range: if the price falls below $2390 , you can consider going long in the short term
Stop loss position: set near $ 2380 , with a small stop loss point
Target position: short-term target can be set in the range of $ 2405-2410

3. Position management
Light position opening: due to the strong market pattern, long-term shorting is recommended to be light to avoid excessive risks
Gradually increase position: if the price falls as expected, You can gradually increase your position to further reduce costs

4. Market sentiment and risk control
When market sentiment fluctuates greatly, you need to stay calm and not let short-term fluctuations affect your decision-making
Important economic data to be released next week (such as inflation and employment data in the United States) may have a significant impact on the trend of gold. If these data support the market's expectations of a Fed rate cut, gold may continue to rise. On the contrary, if the data exceeds expectations and suggests a strong economy, it may put pressure on gold and cause its price to fall back.

In summary, the short-term operation strategy for gold next week should be mainly short on rebound, supplemented by long on pullback, and adjusted according to market sentiment and key data.

Comment:

Gold prices continued their upward trend on Friday (May 17) and decisively broke through $2,400/ounce, with analysts and traders wondering how high the price can rise in the current environment. Spot gold closed up 1.58% at $2,414.50/ounce. The gold market has a lot of important economic data and in-depth speeches from the Federal Reserve to digest this week, and the result has led to one of the most dramatic moves in the precious metals market this year. Spot gold opened the week at $2,361.17/ounce and treaded water on Monday while eagerly awaiting key inflation data that is about to be released. The US PPI report released on Tuesday morning was mixed, but two hours later, Federal Reserve Chairman Jerome Powell told the Foreign Bankers Association that he was confident that the Federal Reserve would not need to raise interest rates again, which comforted the market. Gold prices turned positive early Wednesday, with traders pushing the yellow metal higher when the Consumer Price Index (CPI) report for April showed a month-on-month improvement.

Gold prices have risen 1% so far this week. Chinese demand has driven gold's gains in recent months, but it is becoming increasingly important as the market waits to see whether high gold prices will prompt some central banks to slow their purchases and as physically backed gold exchange-traded funds continue to see outflows. Markets will take a break next week after this week's inflation data drama. Next Wednesday will see the release of US April existing home sales data, as well as the minutes of the FOMC's April/May monetary policy meeting. Next Thursday, the market will receive preview S&P manufacturing and services PMIs, weekly jobless claims, and April new home sales. Next Friday will see the release of the April durable goods report.

Comment:

Gold bulls soared all the way and finally closed above 2400. This is the first time that the daily line has stabilized above 2400. How will gold perform next week? Will it continue to rise? What will be the target price?

Last week, the daily gold line experienced a B-wave rebound. With the end of the B-wave rebound, the risk of a big C-wave decline also followed. Historically, the daily line has never really stabilized at 2400, which is also the reason for the previous bearish view. However, the strength of gold's rise this time exceeded expectations, and it was the first time that the daily line closed above 2400, indicating that the short-term support of 2400 has been formed.

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