Friday midnight violent breakdown, how can gold make another move?

The essence of trading is to find certainty within uncertainty. When the market violently breaks through levels, we do not get swept up in emotions, but instead redefine profits with rules and rhythm.

Today during the white session, gold repeatedly fluctuated in the 5160-5200 range. We took advantage of the highs and lows, consistently profitable. In the evening session, the market suddenly surged violently, reaching a high of 5243.54, directly breaking through key resistance. Currently, it is oscillating near 5237 at a high level. On the news front, the US core PCE price index underperformed expectations, reinforcing the market’s bets on a Fed rate cut in March. Coupled with rising geopolitical risk aversion, this jointly propelled gold’s strong rally.

From a technical perspective, on the 1-hour chart, the price strongly pierced through the upper Bollinger Band, indicating strong short-term bullish momentum, but also showing the need for a correction. The middle Bollinger Band around 5200 is an important support, while the 5240-5250 zone is a strong resistance area.

Strategy-wise, we continue to follow the “buy low, sell high” approach. If the price pulls back to and stabilizes around 5200-5210, consider entering long positions with light size, targeting 5240-5250. If it directly surges to 5245-5250 and faces resistance, then look for high short opportunities, targeting 5210-5200. The overall midday session was characterized by narrow fluctuations, so operate with quick entries and exits, avoiding holding positions overnight.

Additionally, a reminder: the regular closing time for international gold spot markets on Friday is 03:00 Saturday (Beijing time). Some platforms may close 15-30 minutes earlier. Please control your positions carefully and avoid holding overnight.

Disclaimer: The above analysis is for reference only and does not constitute any investment advice. Trade at your own risk.