Zong Xiaoli: Breaking news! Gold prices surge sharply. Is it still a good time to buy now?

2026-04-08 13:37:42

As developments in the Middle East situation have changed, the U.S. and Iran have reached a temporary ceasefire agreement—this has had an enormous impact on the current market!

We can see that after the market received news that the Middle East situation had changed, the U.S. Dollar Index suddenly plunged hard, dropping by more than 60 points in an instant. This, in turn, pulled up a large number of non-USD currencies in the opposite direction, and the RMB also strengthened in response. Meanwhile, the gold market didn’t manage to stay out of it either; it also saw a sharp rise. Prices once surged to around 4858, and a large bullish candle appeared on the daily chart, catching many people off guard. Could the “spring” of gold really be here like this? Isn’t it too fast—without giving anyone even a chance to get on board…

And as the gold price gradually pulls back now, is this a good opportunity to get in? On this question, Xiao Li recommends approaching it cautiously. Because today’s sudden gold rally is mainly driven by geopolitical developments, not because of anything intrinsic in the market itself. Although the price saw a big jump, the underlying foundation is actually not stable. Once the dollar starts to show signs of a rebound, the pressure on gold will quickly become evident. So don’t be careless, and you definitely shouldn’t impulsively enter just to chase longs. Since at this time the demand for a pullback is greater than the demand for upside, only after that pullback demand has been fully released can a suitable “get in” opportunity potentially emerge!

As for the U.S. Dollar Index trend, Xiao Li believes it shouldn’t be taken at face value. Although the dollar is currently under some pressure, the market’s “support” energy will step in afterward as well. Therefore, the U.S. Dollar Index still has the chance to turn around and stage an “absolutely critical counterattack” move. In this situation, if you short the dollar rashly, you’ll be very passive. So today, be careful and stay vigilant at all times for the dollar to enter an “absolutely critical counterattack” scenario. It’s better to find the right moment to buy on dips, for your reference~

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