Zong Xiaoli: The Middle East situation has temporarily eased, and there are new ideas for gold. What's the next step?

As Old Têqiang is forcibly pushing forward the U.S.-Iran peace talks process, we can clearly feel that the situation in the Middle East does show signs of easing. At present, the situation is: the Big Beautiful first puts forward 15 demands, then Arlang offers 5 counterproposals, and then senior officials of Ar’ar disclose in the early hours of today their intention to work toward a comprehensive end to the war. All of these can point quite clearly to the fact that the Middle East situation has indeed been easing, and has already begun to shift from the previously high-intensity state into a new phase of “talk while fighting”…

This stage will undoubtedly have a significant impact on the current market, because the overall shift in the situation will affect market sentiment. That, in turn, will slow down panic over the U.S. dollar, slightly suppress oil prices, and indirectly curb the surge of inflation back in Big Beautiful’s country. And based on the information obtained so far, all of this is slowly being advanced and has started to gradually take effect.

So, against this backdrop,

Where does gold go from here?

Xiaoli believes that after receiving the information that the situation has temporarily eased, gold will also begin to see a shift. From the previous heavy pressure state, it will turn into the current long-versus-short game. In other words, previously gold had been under massive pressure and needed to find opportunities to short from above. But now it has gradually entered a wide-range consolidation phase. Starting today, your trading mindset for gold should change from only viewing it as bearish to being able to look at both longs and shorts. Everyone needs to get this.

As for the trading approach, Xiaoli suggests that starting today, you may selectively go long and take short profit on the higher-low residue gold when opportunities arise. As long as the market reaches the appropriate resistance and support levels, you can make modest moves. After all, falling into consolidation means there are chances for long positions at lower levels. So if the gold price can enter the right range today, it will present a decent opportunity to get on board. In this regard, everyone should pay attention to the shift in rhythm—wait for the right moment to get on board, yoyo~