Zong Xiaoli: V-shaped reversal! Gold swings back and forth, can we still confidently follow?

As everyone has seen, gold can change faces instantly—yesterday during the day, it kept falling, each time more sharply, but by evening it suddenly reversed, the price turned around and kept rising. On the hourly chart, a clear V-shaped pattern has formed, indicating a visible V-shaped reversal market!

Many people don’t understand this—what’s going on? How can gold change faces so quickly? During the day, it was in a downtrend, but by night, it reversed and went up. What exactly is being played here? How should we respond?

In fact, the main reason for gold’s volatility is the influence of geopolitical factors. During the day, the market receives cooling news, but by night, warming news is released. This causes gold to suddenly perform a V-shaped reversal, catching everyone off guard. It’s quite surprising—now the gold market is becoming increasingly unstable. Any slight wind can trigger intense market fluctuations. It’s really challenging!

As for the next step in gold’s trend, I believe we shouldn’t assume it will continue to rise blindly. We must be cautious of unexpected news that could cause another drop. If the news turns unfavorable for gold, it might fall again, catching everyone off guard once more. So, don’t take it lightly. In the short term, moderate trading is okay, but don’t go long. For those still holding positions, it might be wise to consider exiting when the opportunity arises. Just for reference~

Regarding the US dollar index, I’ll summarize in one sentence: Although the dollar is under some pressure, it’s unlikely to fall sharply. After all, the main goal for the dollar is still to strengthen. It’s just being somewhat passive and turbulent due to certain factors. Everyone should be mentally prepared—once the dollar pulls back to a suitable level, it’s a good opportunity to go long at low points…