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

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

So, is this feeling correct? Caution is advised!

Currently, although gold’s upward momentum is not insignificant and 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 positions. Without 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, what is actually happening is a secondary top formation. Once this top is confirmed, gold is likely to trend downward…

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