Gold market analysis

Gold prices remain primarily driven by buying on dips  
Completed on 9/9/2026 at 11:06  

Yesterday's gold price volatility was unprecedented since the all-time high, with sharp and frequent fluctuations that made it a nightmare for trend followers. This has forced investors to bear higher stop-loss risks, while short-term traders must stay closely attuned to market movements and avoid being lured by price breakouts—otherwise, they too face substantial losses. Therefore, investors should adopt systematic trading strategies to prevent emotional decisions from affecting their buy-sell judgments. The intraday range for gold is expected to remain between $4,310 and $4,410; thus, when prices approach these levels, investors should immediately close any unfavorable positions upon seeing strong reversal signals on either the hourly or one-minute charts.

Yesterday, gold failed to effectively break above the extended descending trendline from September 3rd and continued to decline within a balanced downward channel. However, after touching a low of $4,341.61 in this morning’s Asian session, spot gold formed a powerful bullish engulfing pattern on the hourly chart, suggesting that gold may have indeed signaled a bottom as anticipated today. While further declines are still possible following the rebound, today’s short-term bottom signal remains intact.

Measuring the move since September 2nd using Fibonacci extensions from this morning’s low, a 100% extension would push gold up to $4,569.75. Although, viewed over longer timeframes, gold could potentially initiate a second leg down from September 3rd, with a 100% extension implying a drop to $4,096.50, this scenario is currently ruled out. The reason is that the hourly chart shows a head-and-shoulders top pattern over a broader timeframe, with the neckline at $4,282.67. Unless this level is clearly breached, and given today’s tendency toward a short-term bottom, the main strategy remains buying on dips.

The above information is for reference only and does not constitute investment advice.