Gold Awaits a Pullback on Monday

Friends, I'm back! I took a break from August 4th to 7th, missing the non-farm payroll data turmoil.

Today, I'm back to the main topic—what will gold's performance be like next Monday?

Unexpected Non-Farm Payroll Data Sends Gold Prices Soaring $300 in a Week

On August 7th, US non-farm payrolls unexpectedly decreased by 23,000,

while previous figures were revised down by more than 100,000.

The market exploded instantly—the dollar plummeted, and gold prices soared,

reaching a high of $4371 per ounce,

a single-day increase of nearly $120,

and a weekly increase of over $300, a gain of over 7%.

The hourly RSI surged to 76, indicating continuous short-term profit-taking, making chasing the rally unprofitable.

The dividing line between bullish and bearish sentiment is very clear:

Strong resistance is at $4370-$4400,

this is the peak area of ​​Friday's rise and subsequent pullback, and also the ambush zone for the bears.

Support lies at $4300-$4315, the starting point of the rally following the non-farm payroll data release and the last line of defense for the bulls.

If $4300 fails to hold, watch $4255-$4260, the extreme low for a potential pullback. A break below this level would weaken the bullish structure.

Monday's strategy: Wait for a pullback.

The core principle is: Don't chase the rally; wait for a pullback and observe before acting.

For investors holding long positions:

If the price surges to around $4370-$4400 on Monday but fails to break through,

immediately reduce your positions in batches to lock in profits.

Do not be greedy; a 50-80 point pullback after a 300-point rise is perfectly normal.

For investors without positions: Do not rush to chase the rally.

Wait patiently for the price to pull back to $4300-$4315 and stabilize.

Then, attempt to establish a small long position.

Set a stop-loss below $4255.

If the price surges directly without offering any opportunity, abandon the position; watching won't result in a loss.

Important Note: The US CPI data released next Tuesday will be the real turning point next week.

Monday may see consolidation and accumulation;

Don't expect the price to continue rising significantly.

Remember:

Holding $4300, the bulls still have a chance.

If it breaks through $4400, take profits.

Wishing everyone a good start to next week!