After gold broke through $5,000, risks and opportunities coexist

Gold touched a low of around 4990 yesterday, in line with analysis expectations. After the pullback, it successfully stabilized and rebounded, and the overall structure remains in an uptrend. Today’s trading strategy continues to focus on buying on pullbacks, avoiding chasing highs and following the crowd. Currently, bullish sentiment in the market is clearly heating up, but it is necessary to be wary that after gold broke through the 5000 mark, its overall performance is somewhat weak, and the high-level market carries hidden risks, significantly increasing the difficulty of trading. The key resistance level to watch is the 5090-5100 range, where a short-term pullback is possible. On the downside, the key support level to watch is the 5010-4990 range. As long as this area is not broken, the overall strategy remains to buy on dips. Yesterday, we clearly advised patiently waiting for a pullback confirmation in the 5010-4990 range. Today’s strategy continues this logic. We will continue to focus on the support level of 5010-4990. When the price approaches this level, we can consider placing long orders in batches. It is particularly important to note that if 4990 is broken effectively, we should be wary of gold further testing the cycle trend line near 4900. Once this level is broken, a short-term shift in the bullish/bearish structure may occur, entering a new adjustment cycle. The current market is filled with voices advocating for buying, but in reality, risks and opportunities coexist. When viewing market trends rationally, timing is always more important than direction