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Weekend sudden events triggered market risk aversion, and gold responded immediately by showing its true nature—gapping higher on Monday with a clear bullish stance. However, upon closer inspection, this rally is not just driven by news.
From a technical perspective, last week the price spent considerable time around the 4273 level, and a bottom structure gradually took shape. The head and shoulders bottom pattern on the 1-hour chart has basically completed, and the right shoulder has accelerated through recent news-driven momentum. This resonance between technicals and sentiment often indicates that a larger trend is coming.
The news hype will gradually fade, but the technical break is real. The current trading strategy is as follows: consider going long around 4380, with a stop-loss at 4365. If the breakout is successful, initially target 4430, and if strength continues, aim for 4450. In this early-year market, rhythm is very important. Staying in sync with the pace could lead to a strong start ahead.