Zong Xiaoli: Gold prices surged significantly. Is this a good entry point? Not necessarily!

Everyone has seen it. Last Friday, gold suddenly staged a dramatic comeback with a significant rally, with domestic gold prices rising about 65 yuan per gram and international gold prices increasing approximately $315 per ounce, which shocked many people!

Many people are saying that gold has finally started to rise again, and it will go even higher in the future. If you don’t jump in now, when will you?
Is the market really like this? Can we really boldly expect prices to rise and rush in?

Regarding this question, the advice from Xiaoli is to be cautious! After all, the current reasons for gold’s rise are not sufficient. The three major stimulating factors (geopolitical factors, central bank reserve increases, Federal Reserve rate cuts) do not have enough momentum. Plus, the previously strong driving force that caused gold to surge has basically disappeared. The market has now returned to normal conditions, and in this state, adjustments are expected… Over time, the market’s adjustment needs are actually becoming stronger. So, the sudden rebound in gold last Friday may not necessarily indicate a genuine upward trend, but could instead be a secondary attempt to retest the top!

Based on this situation, if you want to boldly go long on gold, you need to weigh the risks carefully, because the market is currently highly volatile, with ongoing correction demands building up. If you go long boldly, the possibility of losses is relatively high. It’s recommended to watch more and act less, as the market needs to adjust, and this is unavoidable…