​Gold short-term trading strategy: an efficient way to make profits in fluctuations

Today, at the beginning of the Asian market, spot gold fluctuated at a high level. Yesterday, gold prices rose again, setting a record high of $2685.49, closing at $2672.25. The main reason is that the United States has released the latest core PCE (personal consumption expenditure) price index and the number of initial unemployment benefits, providing support for US Treasury yields.

The market is still optimistic about the prospects of gold in the near future. Although the Fed is unlikely to easing monetary policy quickly, gold still has upside potential. In the short term, gold prices may continue to fluctuate. In such a volatile trend, short-term trading is particularly favored by traders. Today, I will share two strategies suitable for short-term trading.

1. Average price strategy

The average price strategy is an effective means to flexibly respond to market fluctuations. When a trader builds a position, if the market conditions are contrary to expectations, he can reduce the average cost (when buying) or increase the average selling price (when selling) by gradually increasing the trading volume the same as the original position direction.

For example, after buying gold, if the price drops, traders can continue to buy at a lower price level to lower the overall position cost; once the price rebounds, some or all of the position can be sold at a lower price level to make a profit. This strategy requires traders to have keen market insight and good risk control capabilities.

2. Pyramid operation

Pyramid operation is a more stable strategy to increase positions. When traders make profits in positions, they can consider gradually increasing positions in a pyramid manner. However, it should be noted that two principles must be followed for increasing positions: one is that the existing positions have made profits; the other is that the number of positions increased should gradually decrease.

The advantage of this strategy is that even if there is adverse changes in market prices, traders still have enough time and market space to adjust positions and obtain expected profits due to the gradual increase in position costs but limited overall growth. At the same time, pyramid operations also help traders amplify profitability when the market trend is clear.

However, it should be emphasized that no matter what trading strategy is used, traders need to be vigilant and pay close attention to market trends at all times. The current gold market still faces the influence and challenges of a variety of factors, including the trend of the US dollar, the geopolitical situation, and the upcoming non-agricultural data. Therefore, traders need to adjust their trading strategies in a timely manner and strictly control their risk exposure to ensure investment safety according to market changes.