Since going long on gold in March 2026, my journey of bottom-fishing has not been smooth sailing. I experienced deep "bagholding" when buying GLD and GLDM at the top in May, but I always believed in the major trend. Through steadfast dollar-cost averaging at lower levels and patient waiting, I finally welcomed a structural trend rebound on August 5!

My current positions have turned fully profitable, maintaining a gold allocation of 10%~20%. I strictly execute a "buy low and sell high based on technical analysis" strategy. Today, combining the highly discussed new Singapore Exchange (SGX) Gold/Silver DLC (Daily Leveraged Certificate) on Longbridge, let's dive deep into my underlying logic.

1. Why be bullish on gold for the long term?

Structural weakening of US dollar credit: This is a fundamental mega-trend spanning years to decades. The shift in the global financial order from unipolarity to multipolarity is an irreversible fact.

Unconscious "bottom-position buying" by central banks: The continuous structural accumulation by global central banks forms the most solid stepping stone for the gold price floor.

Awaiting the "east wind" from hot money: Central banks set the stage, while hot money performs. The current rise is primarily driven by fundamentals. Once international hot money gathers strength to enter and "add fuel to the fire," it could easily replicate the raging bull market of last year.

2. Why is gold suitable for swing trading?

When choosing between precious metals, I personally prefer gold over silver for two reasons:

Control volatility, pursue compound interest: Silver has high elasticity, but high volatility is not a catalyst for most people; it is a risk. "Water can carry a boat, but it can also capsize it." The essence of investment compounding is stable profit × time. Gold's moderate volatility allows for more peaceful sleep.

No major shareholders, purely speaking through technicals: As one of the world's largest commodity benchmarks, gold has no single institution or hot money capable of manipulating it long-term. It lacks the tricks of "major shareholder reductions," making technical indicators like MACD, RSI, and trendlines exceptionally clean and effective on gold charts, making it highly suitable for right-side timing and swing buying.

3. Views on Gold/Silver DLC (Leveraged Derivatives)

To be honest, I hadn't paid much attention to DLCs before, but the new Gold and Silver DLCs launched by the Singapore Exchange (SGX) have indeed caught my eye:

Advantage: Settlement directly in Singapore Dollars (SGD), with no exchange rate loss.

⚠️ Risk: 5x intraday leverage, clearly a double-edged sword. The 5x leverage amplifies both returns and volatility risks. Coupled with the DLC's daily reset mechanism, stubbornly holding positions in a volatile market can easily lead to decay. This requires the energy to watch the markets all day.

My core positions remain focused on long-term spot/ETF holdings. However, I will add the SGX Gold DLC to my watchlist. When MACD gives excellent overbought/oversold signals, or when betting on short-term breakouts, I will use a small portion of light position to play with 5x leveraged longs. I will be even more cautious about shorts, as this might serve as a very efficient supplement for yield enhancement.

The market never lacks opportunities. Only by controlling risk and maintaining moderate position sizes can one go far in this market!

What instruments are you using for gold? Would you try using DLC for short-term hedging or leveraging returns? Welcome to discuss in the comments!

#DLC #Gold #Silver #GoldTrading #TechnicalAnalysis