Yesterday's gold market once again performed an exhilarating high-level roller coaster in front of everyone's eyes, showing no sign of secretly gaining strength, just openly pulling between long and short positions.
Recently, the timing for the outbreak of gold's market has basically been stuck at 11 PM, and last night did not escape this rule.
Before this point in time, gold rose from the Asian session all the way to the US session, and even though the previous high had not been broken, there wasn't any sign of a pullback, maintaining a state of high-level sideways fluctuations. Coupled with the inherently strong V-shaped rebound force, those who wanted to short before basically tried to do so during the rebound process in the daytime and ended up losing. After all, at that time, no one could have imagined that gold would rebound so quickly and so high, and could continue to maintain high-level fluctuations, clearly indicating a trend of moving upward, so naturally, no one wanted to easily bet on a decline anymore.
From a technical perspective, there is a key point that directly made people abandon the bearish idea: last Friday's long upper shadow bullish candlestick has been completely swallowed by Monday's market. This trend no longer supports a bearish outlook. At this point, if you still want to go short, losing money is truly inevitable. Don't dwell on not catching this wave of the market; not making any profit is not important. The real luck is not being 'hit' by the market. Didn't you notice how many people fell into the bullish trap today? They completely disregarded the risks of the non-farm data to be released tonight.
This morning, the price of gold has returned above 4300 dollars. In the eyes of the bulls, this is simply an opportunity to enter the market that was handed to them. Everyone thought it would replicate yesterday's trend: first quickly rising to near the previous high, then breaking through with the tailwind of the non-farm data. Everything seemed to be going smoothly. However, an unexpected drop in the morning completely disrupted this script: first, the low point of 4285 dollars from last night was broken, which has already resulted in real losses.
Everyone was originally waiting for the gold price to drop to last Friday's low of 4260 dollars, a key buying point, to enter the market. However, the gold price didn't give any opportunity and started to rebound around 4280 dollars. Many people hurriedly entered the market, but then during lunch, it dropped again to 4270 dollars and they were once again harvested.
In this continually retreating trend, many people can only continue to enter the market, treating 4260 dollars as the last line of defense. At this point, some people's mental state is already unbalanced, but there’s nothing to be done since Monday's rise had given everyone a taste of sweetness, right? Moreover, in the market now, there are all bullish voices for gold, yet few people notice that tonight's non-farm data is a 'strengthened version' that combines October and November data. Whether the data is weak or strong, it could bring significant volatility to gold.$SOL
