Gold Surges on Oct 16, Seeks Low Buys Above 2650

Gold continued its strong bullish trend on Tuesday, firmly holding above 2660 after a brief consolidation, and further breaking through the strong resistance at 2673. The bullish trend is sustained. Yesterday, it encountered resistance at 2653, forming a top-bottom conversion, and during the session, 2666 also successfully formed a top-bottom conversion support. This means that for today's low-long opportunities, focus on these two top-bottom conversion areas. The probability of breaking through to new highs in the near future has increased.

The US Dollar Index has been hovering around 103.3 for several days. Although it has been rising, the magnitude is decreasing, and it is very likely that after a slight rise, it will begin to enter a consolidation phase.

Trend: The medium to long-term bullish trend remains unchanged, with a focus on strong bullish moves above 2650 in the short term.

Structure: After adjusting the structure at the 4-hour level yesterday, it entered a new rebound wave. If it surges upwards from 2601, it may be entering wave C of the rebound or the third wave of the rise.

Pattern: After a high-position hammer on the weekly chart, if this week ends with a strong positive, there is potential for further increases next week. This means that if Thursday and Friday do not effectively rise and fall back, ending with an upper shadow line, the probability of continuing to rise next week is high. Conversely, if there is a fall, it will appear on Thursday and Friday. On the daily chart, as mentioned yesterday, it stood firm above the previous consolidation breakthrough at 2660, forming a continuation of the bullish trend, and the intraday session directly strengthened with a strong positive continuation. It is close to the new high of 2685. The overall upward channel remains intact. However, it is necessary to pay attention to whether there will be a fall on Thursday and Friday. On the 4-hour chart, after testing 2637 yesterday, it formed two medium-length positive candles, indicating the end of the short-term pullback and a return to a strong bullish trend. With the establishment of the top-bottom conversion at 2653 and 2666, today continues to rely on these two positions to look for a bullish operation.

Strength: The morning session is strong, the European session continues, and there is still a high point in the US session, but be wary of the situation of rising and falling back at the end of the day.

Key support levels: 2666, 2653, 2636. Key resistance levels: 2685, 2700, 2720.

Intraday strategy:

1. Retest the top-bottom conversion area of 2666-68 for a low-long position, with a stop loss at 2659, and look up to 2675-85. If it breaks through, look at the 2690 area.

2. For a second low-long opportunity, focus on the 2652-4 area, with a defense at 2644, and look up to the 2662-70 area.If the market does not provide an opportunity for a retracement to continue the strong bullish trend, then after breaking through 2685, one can only rely on the long positions near 2673, with a stop-loss at 2665, to further speculate on the 2685-2700 area. However, if the opportunity arises at the end of the trading day, this strategy should be abandoned.

For those who wish to speculate on the short side within the day, it is advisable to wait for the later part of the US trading session before considering it, with the price preferably above 2690.