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

I believe everyone has seen that gold suddenly staged a fierce rebound last Friday, directly forming a large bullish candle, giving a sense of optimism; and on Monday this week, gold rose again, with the price approaching the previous high near 5091, once again giving the impression that gold is about to break through a new high, further opening up upward space, and that it will rise even higher in the future…

So, is this feeling correct? I recommend exercising caution!

Currently, although gold’s upward momentum is not insignificant and somewhat positive, we must note 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 upward movement, it is actually a secondary top-testing behavior. Once this top-testing is confirmed, gold is likely to show a downward trend…

Regarding tonight’s gold movement, I advise caution. Be alert for small manipulations in gold, such as a false move to mislead the market. It’s best to wait until the market intention is clearer before taking action. Tonight, consider opportunistically shorting on rallies for reference!