Last Friday, spot gold rose by more than 1%, reaching a high of $2,661.37, and ultimately closed up by 1.04% at $2,657.03 per ounce. Spot silver ultimately closed up by 1.22%, at $31.52 per ounce. The U.S. September PPI data demonstrated that the U.S. inflation outlook remains favorable, providing a rationale for another rate cut at the November meeting. Meanwhile, CFTC data showed that net long positions in gold have fallen for two consecutive weeks, primarily driven by reductions in long positions. However, the medium to long-term upward trend for gold has been established, and short-term fluctuations and pullbacks may present a good opportunity.

The rebound in gold that began last Thursday may have come to an end, with the strong performance of U.S. Treasury yields and the U.S. dollar likely to push gold prices to retest the $2,600 level. Xu Gucheng stated that this week's economy is relatively light, and gold prices may maintain a range-bound movement in the short term. However, a break below the $2,590-$2,600 range could attract short positions. Xu Gucheng believes that between the months leading into the seasonal gold buying period, gold may experience a healthy correction. Gold opened lower this morning, falling rapidly by about $10, and touched a low near $2,642, forming a new platform before rebounding. The daily chart also hit the moving average system, and from a technical perspective, the moving averages below are expected to form a bullish arrangement. The previous high near $85 is also the first significant resistance level to consider.

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Gold: After testing $2,605, it maintained a strong upward trend. The Relative Strength Index (RSI) has rebounded from a moderate level, indicating that gold may have bottomed out. Prices are likely to remain within an expanding wedge pattern, and a breakout above $2,685 would initiate the next round of strong gains. The 4-hour chart also shows a strong bullish trend in the form of an ascending channel. The previously tested $2,605 is the key support构成ing the lower boundary of the upward channel. The strong rebound from this support highlights strong price momentum. The strong closing on Friday suggests that gold prices have the potential for further gains. The RSI also implies the possibility of further increases in gold prices. To avoid falling into a short-term consolidation, prices need to rise above $2,685. Therefore, today Xu Gucheng suggests that for the early part of the week, gold should still be approached with a focus on high selling. Although he is more optimistic about a short-term decline, he advises against chasing shorts. Shorts can only be taken during a rebound at the beginning of the week. The small cycle's upper resistance point is near $2,652, and during the Asian and European sessions, one can sell short at this level, first looking at the strength and weakness point of $2,630.

Crude Oil: The Middle East situation and the impact of hurricanes have driven up short-term oil prices, but market concerns about high crude oil inventories and the global economic outlook still persist. The Federal Reserve may adopt a more gradual monetary policy, suppressing economic growth, thereby putting pressure on crude oil demand. A slowdown in the global economy could lead to reduced demand, putting downward pressure on crude oil prices. Last week, the crude oil market was influenced by many factors, with prices fluctuating back and forth. Overall, crude oil prices have risen for a second consecutive week. Today, crude oil should first focus on the 1-hour support area below, and after stabilization, attempt to go long on crude oil. Crude oil remains within the range of 76.2/72.5; if this range is not broken, a strong one-sided trend is not expected. High selling and low buying can be done within this range. If the range is broken, an upward break would look for a one-sided move to the previous high of 78.5, while a downward break would look at the 70 level. Xu Gucheng believes that for the early part of the week, the focus should be on range-bound trading. After the range breaks, then consider the changes in the market for the rest of the period.