Next week's gold market forecast
This week, the gold market staged a classic trend reversal drama! On Monday, it fluctuated in the low range of $4655, and within just a few trading days, it experienced a breakthrough rise, accumulating a gain of over $300, peaking close to $4970. This vigorous V-shaped rebound completely reversed the previously bearish market trend.
Expectations for a Federal Reserve interest rate cut are warming up again! The ADP employment data released on Wednesday fell short of market expectations, coupled with dovish comments from Federal Reserve officials, which directly dispelled the market's previous concerns about hawkish policies. Weak economic data triggered market bets on easing policies, pushing the dollar index lower, while gold, as a traditional safe-haven asset, naturally became the focus of capital pursuit.
From a technical perspective, the price has successfully stabilized at the key level of the Bollinger Bands' middle track at $4920 on the 4-hour chart, and is currently making a push towards the upper track at the $5080 region; the vertical rise that began from the low of $4655 has formed a solid V-shaped reversal bottom pattern.
The $4900-$4920 range constitutes a key support line for the bulls. As long as this range is not effectively broken, the overall strong trend will continue; in the short term, the primary target for the market is to conquer the psychological barrier of $5000. Once broken, it will advance towards the $5080-$5100 region. If the weekly level can stabilize above $5000, it will further open up a broad space above $5200 for the mid-term market.
It is now an established fact that the trend of gold has turned bullish, and the contest for the $5000 psychological level is already imminent. As long as the support level of $4920 is maintained, the subsequent upward trend is worth looking forward to!
