The momentum of long positions in after-hours gold is indeed solid, as London gold surged past the $4420 mark in one go, setting a new historical high. Shanghai gold is also not to be outdone, as it is about to approach the psychological level of 1000 yuan/gram.

Why are long positions so fierce right now? Simply put, it's a matter of three words: money is flowing. The expectation of interest rate cuts from the Federal Reserve is growing stronger, and risk-averse funds are continuously pouring into the precious metals market. Moreover, central banks around the world have been frequently increasing their gold reserves recently, and this combined force has directly pushed prices up. The technical picture is clearer than ever—perfect long positions, with no signs of weakness in the upward trend.

The key points to watch are these: The London gold has strong support at the range of $4390-$4395, and it’s only a real breakdown if it breaks this level. The next line of defense is at $4380. Looking upward, $4420 has already been taken, and the real focus is whether the area of $4440-$4450 can continue to push higher. The short-term support for Shanghai gold is locked in at 993-995 yuan/gram.

Operational advice: If you have a conservative trading approach, you can gradually build long positions in the range of $4390-$4380, and don't set your stop loss too tight; it's okay to stop loss below $4370. For those with a higher risk tolerance, you can wait for a breakout above $4420 and then confirm the pullback before adding to your position. Regardless of the approach, the most critical aspect is to control your position size—don't exceed 20% of your capital, which is very important. Also, the Christmas holidays are coming up soon, and holiday markets tend to be very volatile, so reducing your position in advance to avoid risks is a smart choice.