How to Grasp the Direction of Major Funds in the Spot Gold Market Through PriceVolume Relationship Indicators

In the spot gold market, analyzing pricevolume relationship indicators can assist investors in discerning the direction of major funds, thereby enabling more precise investment decisions. Below are some practical steps and techniques to effectively grasp market trends.✨

1. Understand the Basic Concepts
Price: Refers to the trading price of gold, usually quoted in US dollars per ounce (oz.
Volume: Refers to the trading volume, which indicates the quantity of gold traded within a specific timeframe.

⚠️ Grasping these fundamental concepts is the first step in analyzing the pricevolume relationship.

2. Observe the PriceVolume Relationship
Price Rise with Volume Increase: If the gold price rises while the trading volume also increases, this generally indicates an inflow of major funds, suggesting a potential strengthening of the market.
Price Rise with Volume Decrease: If the price rises but the trading volume decreases, it may imply a lack of upward momentum and a possible withdrawal of major funds.
Price Drop with Volume Increase: If the price decreases alongside an increase in volume, it signifies that the market is likely focusing on the selling actions of major funds, with further downward potential remaining.
Price Drop with Volume Decrease: If the price declines while the volume decreases, this could indicate a reduction in selling pressure, suggesting a potential rebound in gold prices.

3. Utilize Common Technical Indicators
Volume Moving Average: Set a fixedperiod moving average for volume to help identify any anomalies in trading activity.
Relative Strength Index (RSI: When combined with volume analysis, the RSI can further reaffirm the reliability of price movements.
MACD Indicator: Used to discern changes in trend; if the MACD diverges from price movements, it may indicate the intentions of major funds.

4. Integrate Market News and Data Releases
Stay attuned to international market trends, economic data, and policy changes, as these factors directly influence gold prices and trading volume. For instance, the Federal Reserve’s interest rate decisions and inflation data have a direct impact on fund flow.

5. Practice and Simulated Trading
Simulated Trading: Before engaging in real transactions, practice the pricevolume relationship through simulation platforms to familiarize oneself with market responses under various conditions.
Practical Application: Apply the acquired knowledge in the real market while maintaining flexibility to deepen understanding through actual operations.

6. Summarize and Reflect
Regularly compile your trading records, analyzing which operations were successful and which were not, correlating these with changes in price and volume, thus continuously enhancing analytical capabilities.⚙️

In Summary
Through these steps, investors can effectively grasp the direction of major funds in the spot gold market, thereby enhancing their trading decisionmaking capabilities. Remember, the market is unpredictable; steadfast learning and practice are essential to remain invincible in this field.

Gold Investment, Major Funds, PriceVolume Relationship, Market Analysis, Trading Strategy.