Today's gold market commentary for March 28... Dollar-cost averaging strategy for gold? What are entry points that you can still jump on now?

Where will NY gold rise to?— The $3,100 future and buying on dips strategy

Hello, I am Neko-kai from the Trade Idea Lab.

Now, yesterday’s NY gold, the final trading day for the March month, passed smoothly (?) and rose further. The gold market has recently been rising like a rocket. Many people may be wondering how high it will go.

But in this kind of market, it’s important to build a calm strategy. So today, we’ll delve into the direction of gold prices, weaving in episodes and humor.

1. Goldman Sachs’s $3,100 forecast and the real market

First, GS (Goldman Sachs) has long announced the forecast that “the average price of gold in 2025 will be $3,100.”

When I heard this, I thought to myself:

“Oh, finally gold is approaching the $3,000 level…”

Honestly, in the past I had the fixed idea that “gold is a safe asset” and it wouldn’t rise so explosively.

But the market is always changing.

If you look back at history, periods when gold surged have always had a big “reason.” For example, the explosive rise in gold prices from 2008 to 2011 after the Lehman Shock. In times of financial anxiety, everyone rushed to gold to avoid risk, right?

Looking at the current situation, there are plenty of reasons for gold to rise.

• Inflation concerns (global currency value is unstable)

• Central banks buying gold (especially China and Russia quietly increasing purchases)

• Geopolitical risks (Ukraine situation, Middle East issues)

• U.S. interest rate policy (gold is bought when rate-cut expectations rise)

GS’s $3,100 forecast makes sense when you consider these factors.

2. So how high will it rise?

“If GS’s forecast is $3,100, isn’t that the ceiling?”

One might think so, but markets don’t move exactly as predicted. In fact, if market psychology heats up, the price could even exceed $3,100.

For example, when historical highs are broken, many traders think “this is too much,” yet prices often rise further.

In the case of gold, even in past big bull markets, prices often rise more than expected.

【Episode】Friend’s failure in 2011 gold bull market

In 2011, when gold exceeded $1,900.

My trading buddy A-kun thought “surely it’s the top now” and shorted.

Result……

The gold price rose further after a brief pullback. A-kun went into a stop-loss hell.

“No way! It can’t rise this much!”

He shouted, kept adding shorts, got squeezed, and eventually exited.

From this episode, we learn that “in big markets, price moves beyond expectations.”

If A-kun at that time had bought on dips, he would have made enormous profits.

3. Keep buying on dips strategy

With this backdrop, the current gold market still has room to rise, in my view.

Therefore, as a strategy, buying on dips is the only option.

In particular, technically, entering from the PP (Pivot Point) is effective.

【Episode】A story of not being able to wait for a dip

In the past, I also aimed to buy on dips but couldn’t wait and jumped in.

One day, gold surged and I impulsively went long, thinking, “I have to ride this!”

As a result, the moment I entered, the price dropped, and I incurred unexpected losses.

The market rule: “Don’t hurry, wait for a dip.”

This applies to gold markets as well.

So, the current strategy is to buy when nearing the PP pivot point. This is a solid approach.

4. Summary: How high will gold go?

Currently, gold is steadily rising toward GS’s forecast of $3,100.

However, markets don’t move predictably; they can overshoot or experience unexpected corrections.

Therefore, instead of rushing in, it’s important to target dips firmly.

Future strategy:

✅ Be mindful of GS’s $3,100 forecast, while considering the possibility of further rises

✅ Use PP pivot points and aim to buy on dips

✅ Do not jump in during sharp rallies; wait calmly for the right moment

With this strategy, let’s ride the big wave of gold prices!

Well then, see you in the next Trade Idea Lab!