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, which directly shocked many people!

Many people seeing this market movement 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 else?
Is the market really like this? Can we truly be bold in expecting prices to rise and rush to buy?

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 previously strong driving force that caused gold to surge has basically disappeared. The market has now returned to a normal state, and in this state, adjustments are likely to occur… Over time, the need for market correction is actually becoming stronger. So, the sudden rebound of gold last Friday may not necessarily indicate a genuine upward trend; it could very well be a secondary attempt to retest the top!

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 act boldly and go long, the possibility of losses is relatively high. It is recommended to watch more and act less, as the market needs to adjust, and this is unavoidable…