Last week, gold dropped from 2483 to 2393 before stabilizing. During the Asian trading session today, the price remained in the range of 2394 to 2412.
Chart analysis shows that the key level of 2393 is the correction level from the second week of July.
As this upward trend has broken historical highs over three weeks, and the average volatility momentum has completed its rise through the release of the non-farm payroll, CPI, and PPI data,
the momentum this week is expected to be minimal, leading to a range-bound movement. Next month, after the range-bound pattern is determined, we will confirm whether another upward trend will follow.
For 'trend-following trading,' pay attention to the key levels of 2400 and 2393 below. Small position long trades can be arranged (with proper risk control), and if the price breaks the key levels of 2412 and 2416 above, long trades can be entered.
For 'counter-trend trading,' if the price falls below the key levels of 2392 and 2378, breaking the lower support trend line, observe the price without bouncing back above the trend line, and short trades can be entered. Pay attention to position risk control.
