Gold is set to explode tonight! Initial jobless claims data will decide everything, and the 4200 level will directly determine the long/short direction!

Tonight, gold is definitely the main event! As soon as the initial jobless claims data is released, whether or not the critical $4,200 level can hold will directly decide the future trend. Whether you're currently holding positions or looking to enter, you need to keep a close eye on the market and not get distracted!

Since the end of November, gold has been in "bull mode," surging over 60% and repeatedly hitting new yearly highs, with the bulls looking extremely fierce. But today's market during the day was a bit "sluggish," oscillating weakly around 4200, clearly showing that funds are hesitant to act before the data, with many uncertainties lurking. After all, the related data over the past two weeks have all been "unexpected shocks." A few days ago, initial jobless claims dropped directly to 191,000, a multi-year low, causing gold to plunge $10 in the short term. No one can be sure whether tonight's data will see another reversal.

Looking at key levels, $4,230 above is a tough resistance—previous attempts to break through have failed to hold. If you want to chase the upside, wait for a solid break above 4,230 before acting. Once it holds, the target is directly 4,250-4,260, which is the new target for this rally. Support below is even more critical: $4,170 is the "lifeline." It's not only the 50-day moving average but also strong support from previous top-to-bottom reversals. As long as it holds, buying on dips has a strong case. If it breaks below 4,170, it may drop directly to 4,150 or even 4,140.

My judgment is that tonight's market will be a "rise first, then fall" scenario! After the data is released, there's a high probability of an initial spike, but after consecutive surges, the bulls are showing signs of fatigue, plus the dollar index is stabilizing in the short term, which could trigger a bearish counterattack. Don’t blindly follow the crowd in your trades: if you chase the breakout above 4,230, set your stop loss below 4,220; if you buy near 4,170, set your stop loss below 4,165. Never hold on stubbornly without a stop loss!

Right now, the whole market is focused on the initial jobless claims data. Whether the resilience in the labor market will pour cold water on gold again depends on tonight’s numbers. Remember, the more exciting the market, the more you need to stay steady. Manage your positions carefully, follow the key levels, and you’ll steadily make profits. Don’t let sudden volatility throw off your rhythm!