Gold, the short-term adjustment has come to an end. Since breaking through $2739 last Friday, the phase of adjustment has drawn to a close, and a new round of increases will soon be initiated.
Financial markets, with a significant increase in uncertainty, are also experiencing intensified volatility in financial assets.
Amidst this uncertainty, there is a need to allocate safe-haven assets to hedge against risks, and gold is the optimal choice. A substantial amount of capital will opt to allocate gold to mitigate risks. At this moment, gold serves as a hedging tool, waiting for the results to be revealed before selling and repricing financial assets.
Additionally, the October U.S. non-farm payroll data on Friday will also briefly affect the direction of gold prices. The non-farm data primarily influences the guidance of the Federal Reserve's monetary policy in November—whether the Fed will cut rates by 50 basis points or 25 basis points on November 7th (next Thursday).
Currently, the market's focus is on the Federal Reserve's monetary policy. No one knows for sure, and American tycoons have begun to take sides, supporting their preferred party leaders, all for their own interests and future prospects, under the guise of sharing concerns for America. The answer will only be revealed on November 5th.
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At present, it is crucial to focus on the technical structure and the fluctuations in price. Last Friday, the price dropped from $2758 to $2708, and then the intraday low moved higher. The break of $2739 last Friday already indicated the end of the adjustment. Yesterday, the market retested the area near $2730, which does not affect the ultimate rise. Currently, gold has reached a historical high, and whether the European market can continue is the key.
Solving the current internal issues in the United States, rate cuts are the only means, and rate cuts act as a booster for gold. It is only when the U.S. economy recovers and gets back on track that gold's upward trend will end, which is clearly not the case now.
A short-term drop in gold prices is only temporary and will not fundamentally affect the long-term trend. Instead, it is a good opportunity to get back on board. Do not fear a gold price peak; those who have missed out on this bull market are those who have been doubting and questioning all along, while optimists have enjoyed this once-in-a-lifetime bull market.
Today, gold continues to rise. Yesterday, it was emphasized that the break of $2736 has already formed a new round of increases. The target of $2756 has been reached this morning. After approaching the previous high, a retest and confirmation of the top-bottom conversion at 2748-50 is needed. Then, the upward rebound should still focus on the breakthrough in the $2758-60 area. If gold continues to rise in the afternoon, the adjustment before the U.S. market will become a new opportunity to get on board. From the 1/2/3 structure, the low moves up, focusing on the top-bottom attention and the starting point. After breaking through $2760, pay attention to $2768/2776.
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