Happy weekend everyone. This week, the precious metals market was quite active, with both gold and silver showing points of interest. Let's review together and also take a look at what might happen next week.

Why is next week considered a critical moment? There are two reasons. First, although the weekly candlestick closed higher, the upward momentum has already shown signs of weakening. The gap up on Monday caused some concern, and with three out of five trading days this week experiencing pullbacks, the technical picture has become quite complex.

More importantly, the US core inflation data is about to be released, and the Davos Forum will also send out many policy signals. From economic data to high-level dialogues, from central bank actions to energy market reports, these factors will intertwine and directly test the support level of gold.

How did this week unfold? On Monday morning, gold surged strongly, hitting a new all-time high, but this also exhausted much of the momentum and market enthusiasm. In the following trading days, the market experienced a series of rises and falls, resulting in choppy trading. On Friday, there was a significant pullback, but such sharp declines are often not trend reversals—they could be profit-taking or a "reversal to pick up" situation. Remember: a sharp decline is usually followed by a rebound. Friday’s movement confirmed this rule. Currently, the $4600 level is a battleground between bulls and bears.

The logic behind gold is quite clear: weak economic data, rising risk aversion, and increasing inflation expectations.

From a technical perspective, the weekly candlestick remains within an upward channel, maintaining medium-term bullish confidence. The daily chart shows two consecutive long lower shadow doji stars. This pattern is generally considered a bullish signal, but the doji candlestick also adds some short-term uncertainty.