This Week's Gold Market Review and Next Week's Outlook

This Week's Gold Price Review

This week's gold trend was a pattern of first falling then rising. On Monday, the price dropped to a low point and stabilized, then rebounded all the way up.

When the gold price first reached 4870, it encountered resistance and slightly pulled back, then continued to surge higher, reaching around 4889 at the peak. Calculated over the week, the gold price rose nearly $250, ending with a large bullish candlestick on the weekly chart. Clearly, the overall direction of gold remains upward, with a particularly stable bullish trend.

Reasons for the Sharp Rise in Gold

This strong surge in gold was due to multiple positive factors coming together. In simple terms, here are the key points:

1. Geopolitical Impact: The US and Iran are likely to face each other for negotiations again this weekend. Iran has agreed not to develop nuclear weapons. Additionally, Lebanon and Israel have reached a 10-day ceasefire agreement. Tensions in the Middle East are gradually easing. As a safe-haven and value-preserving asset, gold is favored by large capital inflows, naturally pushing prices higher.

2. Weakening US Dollar: The US dollar index has remained low, with market expectations of a Federal Reserve rate cut growing stronger, leading to dollar depreciation. Since gold is priced in dollars, the less valuable the dollar, the more valuable gold becomes.

3. Central Bank Gold Purchases: Central banks worldwide have been buying gold continuously for 18 months, providing ongoing support for gold prices. As long as the dollar's credibility remains unstable, this trend of central bank gold buying will continue.

4. Inflation Support: The crisis in the Strait of Hormuz has not been fully resolved, and oil prices remain high, driving inflation up. Gold's anti-inflation properties are highlighted, further supporting its price increase.

Overall, in the medium term, gold still has upward momentum.

Technical Analysis and Key Levels for Next Week

From a technical perspective, gold has been steadily rising in the short term, with higher highs and higher lows, a very typical bullish trend.

Next week's key price levels to watch:

Support levels: 4830, 4795, 4765 (if gold drops to these levels, downward pressure lessens, and stabilization is easier)

Resistance levels: 4890, 4900, 5048 (if gold rises to these levels, resistance may cause a pullback)

Next Week's Trading Recommendations

The core strategy is to focus on buying on dips, meaning waiting for the price to pull back and stabilize before going long. Only at key resistance levels should small positions be attempted to catch corrections, and never go against the main trend.

Be patient and wait for the price to pull back and show clear stabilization signals before entering swing long positions, capturing the next upward wave.

Investment Insights

Finally, I want to be honest: in a strong upward trend, only those who can accurately identify entry points can make big money; in choppy markets, patience and avoiding reckless trades are essential to prevent losses.

Many investors enter the market full of hope but end up disappointed—not because the market is too difficult, but because they miss the right timing and lack the courage to hold positions.

In investing, choosing the right direction and following the correct approach are far more important than blind effort. Understanding how to operate along the trend allows for easier profits. Follow the market rhythm, identify patterns, and steadily capture profits!