Zong Xiaoli: Gold prices surged significantly. Is this a good entry point? Not necessarily!

Everyone has seen it. Last Friday, gold suddenly staged a dramatic rebound, with a significant increase. Domestic gold prices rose by about 65 yuan per gram, and international gold prices increased by approximately $315 per ounce, shocking many people!

Many people are saying that gold has finally started to rise again, and it will go even higher in the future. If you don’t jump in now, when will you?
Is the market really like this? Can we really confidently expect prices to rise and rush in?

Regarding this question, the advice from Xiaoli is to be cautious! After all, the current reasons for gold’s rise are not sufficient. The three major stimulating factors (geopolitical factors, central bank reserve increases, Federal Reserve rate cuts) do not have enough momentum. Plus, the strong driving force that previously propelled gold prices upward has basically disappeared. The market has now returned to a normal state, and in this state, adjustments are likely to occur… Over time, the market’s adjustment needs are actually becoming stronger. So, the sudden rebound last Friday may not necessarily indicate genuine upward movement, but could instead be a second attempt at a peak!

Based on this situation, if you want to boldly go long on gold, you need to weigh the risks carefully. Currently, market risks are high, and the need for a correction is accumulating. If you blindly go long, the possibility of losses is quite high. It’s better to watch more and act less, as the market needs to adjust—this is unavoidable…