2026-01-12 02:25:21

The current rally in spot gold has been truly fierce, directly surging past the $4600/oz mark, with the Asian session even touching a historical high of $4600.79. After pulling back to around $4577, many traders are eager to chase in, but now is the time to be cautious.

Why shouldn't you chase? Simply put, this move has been too rapid and aggressive. Looking at technical indicators, the number of long positions has already piled up to the top, a classic overbought signal. It's like a spring compressed too tightly, ready to bounce back at any moment. Moreover, the $4600 level itself is very special—market attempts to break through this level several times before, and the selling pressure around this area remains heavy. Continuing to push higher is quite difficult. Recklessly chasing in could easily lead to losses from a pullback from the high.

The trading approach moving forward should be: shorting on rallies. In simple terms, patiently wait for the price to rise again to high levels, then establish small short positions to profit from short-term pullbacks. But there's a prerequisite—this is a short-term strategy. Never hold short positions long-term, as the overall trend is still oscillating at high levels.

How to operate specifically? Remember three ironclad rules: First, keep your position size light. Don't invest all your capital; gold can have such volatile swings that they can wipe out your principal. Only with small positions can you survive longer. Second, set your stop-loss in advance. If the price unexpectedly breaks through the 4610 support level, exit immediately—never hold on in hopes of a rebound. Third, take profits when the time is right. Short-term trading is about quick in and out; take reasonable profits and close the position. Greed often turns winning trades into losses.

Also, do not overlook: closely monitor the Federal Reserve's upcoming interest rate meetings, the release of US inflation data, and the evolution of international geopolitical situations. Any change in these factors can cause gold prices to fluctuate instantly. Prepare contingency plans in advance—don't wait until the market has already changed to react. The core idea now is to avoid chasing highs and to use short positions to capture pullback opportunities. Safety always comes first.

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MonkeySeeMonkeyDo

· 6h ago

The spring is too tight, it will rebound sooner or later. Chasing highs is just giving away money. This wave of gold is indeed fierce, but the 4600 level has been stepped on by too many. Short-term trading for the spread is okay, but holding long-term short positions is just for show. Light positions, light positions, light positions. Those who heavily loaded in this wave are basically crying. Any wind or movement from the Federal Reserve causes gold to jump immediately. Keep an eye on the news and don't get smashed by false signals. Shorting on rallies sounds simple, but few can really stick to stop-losses. Most are just fantasizing about rebounds trapping themselves. That line at 4610 must not be broken. If it breaks, just run. Don't gamble.

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AlgoAlchemist

· 6h ago

Chasing highs always leads to martyrdom; I'll wait for a pullback before making a move. --- The 4600 level is a trap; last time, it was played to death the same way. --- Short-term bearish? I'm still a bit cautious; let's see what the Federal Reserve says first. --- Light positions, stop-loss, quick exit—I've memorized this iron rule. It's better than full position risking an account blow-up. --- Gold has been a bit strange lately. The overbought signals are so obvious, why push further? --- It's easy to talk about avoiding the trap of chasing highs, but in practice, it's still easy to get caught. --- Stop-loss at 4610, take profits when the gains look good—easier said than done. --- Sudden fluctuations due to geopolitical changes are the most terrifying. --- If the spring is compressed too tightly, it will rebound sooner or later. Better not to step on this mine. --- Only with light positions can you survive longer. I need to keep this in my mind.

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AirdropCollector

· 6h ago

The spring is compressed too tightly and will eventually rebound. The 4600 level is heavily guarded, and I won't foolishly chase after it. --- Once again, overbought signals are everywhere, waiting to suffer from a high-level correction. Let's wait and see. --- Light positions, stop-loss, quick in and out—these three tactics must be used well to survive longer. Greed is truly the poison of trading. --- Picking up the difference during a short-term pullback sounds simple, but actually executing it requires keeping nerves tight. A single piece of news can break your defense. --- Whenever the Federal Reserve meetings start, gold prices tend to fluctuate wildly. I need to keep a close eye on this wave of market movements and not drop the ball. --- It took too long to break through the 4600 level. The selling pressure here is a bit terrifying. Want to continue breaking upward? That's not very realistic. --- Appearing simple, shorting on rallies actually requires strong psychological resilience. Many traders want to close their positions at the first sign of a pullback. --- Making a reasonable profit margin and then exiting is easier said than done. I still need more practice in knowing when to take profits. --- Geopolitical situations are the most annoying. When something suddenly happens, gold surges. It's hard to guard against all surprises. --- The issue of position size really depends on whether you can accept this wave of losses. Nothing else.

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BackrowObserver

· 6h ago

Gold has indeed been fierce this wave, but chasing highs is just asking for death. When the spring is compressed too tightly, it will eventually rebound. The 4600 level is being held firmly. Want to break through? Dream on. Short-term trading for profit is okay, but you must be ruthless with stop-losses, or you'll lose everything with just one reverse move. Light positions, stop-losses, quick exits—having all three is essential; missing even one will cause a crack. The key is to keep an eye on the Federal Reserve's movements; otherwise, a black swan event could catch you off guard. Friends chasing highs, think carefully—this market loves to harvest the greed of traders. Actually, there are only two words now—wait. Waiting for it to surge again, a beautiful shorting opportunity is the way to survive.

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