Zong Xiaoli: Gold suddenly pulls back, what's going on? Is it still a good time to jump in?

Did everyone see that gold suddenly dropped sharply in the early trading session today? Was it a bit unexpected? Why did gold suddenly fall?

Actually, a sudden decline in gold is within the normal range. After all, current gold prices are really high, and the bubble is too large. It needs enough adjustment to lay the foundation for future continued rise.

But we need to pay attention to the fact that this gold correction was triggered at a special time—during the Asian trading session. If it had been two months ago, gold would usually be on an upward trend at this time, and a decline would be impossible. However, now the market has already started to move into a downtrend, which indicates that the demand for gold to rise has basically been exhausted. The next step is to gradually return to normal market logic, and a larger correction is urgently needed. After all, gold can’t keep rising forever without any significant adjustments. If there were no proper corrections, the gold market would have a big problem. Therefore, it’s normal for gold to enter a correction phase or even experience a larger decline, because this is part of the market’s recovery process. It’s important to understand what this means…

From today’s gold movements, we can draw some key points: the pace of continuous large-scale rise in gold has basically come to an end. The next focus is on how to adjust and decline. So, this situation is definitely not suitable for accumulation or entering the market unless your entry cost is very low and you can quickly buy and sell. If your entry cost is higher and you cannot quickly buy and sell, it’s better to watch more and act less. After all, the market has already started to enter a correction phase, so caution is the best approach!