On October 1st, Tuesday's gold market experienced V-shaped volatility before closing strongly higher, demonstrating that bullish momentum remains solid. From a technical perspective, September concluded with a substantial bullish monthly candlestick, establishing a firm foundation for continued strength in October's market action, with prices potentially advancing further toward the 3900 level.
The current price movement represents a technical correction following new highs, rather than a trend reversal. The 3845-3840 area on the four-hour timeframe serves as crucial support and can be viewed as the short-term dividing line between bulls and bears. As long as prices maintain stability above this zone, the overall bullish trend will remain intact, with a high probability of reaching new highs in subsequent trading.
Trading Strategy: Focus primarily on buying dips. Should prices retreat to the 3850-3840 support zone, consider establishing long positions in phases. This week, particular attention should be paid to potential short-term volatility that may arise from U.S. non-farm payroll data, though the core approach should align with the primary trend. Even if data results in short-term bearish pressure causing a decline, as long as key support levels remain intact, any pullback should be viewed as a low-entry opportunity.
Trading requires strict stop-loss implementation, reasonable position sizing, and proper risk management protocols.
