On January 14, we noted yesterday, Tuesday, that rising market expectations for the Federal Reserve to implement two interest rate cuts within the year, coupled with the concentrated escalation of geopolitical risks stimulating safe-haven buying, jointly propelled the rise in gold, supporting the price to refresh its historical peak. Therefore, in terms of trading strategy, it was advised to focus on the support level at $4550; if gold stabilizes above this level, there is an opportunity for further upward momentum. The resistance levels to watch are $4600, followed by $4630. If the price continues to break upwards, the potential target extends to $4680. Looking at the subsequent price action, during the European session on Tuesday, gold maintained a high-level consolidation within the $4570 to $4600 range. Approaching the US session, gold retreated to find support at $4577, then began a fluctuating upward move. After the US market opened, it broke through and stabilized above the key $4600 level, reaching a high of $4634, thereby setting a new historical record. Subsequently, the gold price experienced a fluctuating retreat, found support again at $4570, and then stabilized to rise once more. After opening on Wednesday, it hit a new record high of $4639. Since then, the price has tested this level multiple times but failed to achieve a further breakthrough, and is currently trading around $4632. Overall, gold reaching another record high aligns with our bullish outlook. Wolfinance star analysts believe that after setting a new record high on Monday, gold continued its ascent on Wednesday, again achieving a historic peak, demonstrating strong short-term momentum. Expectations for Federal Reserve rate cuts and ongoing geopolitical tensions continue to provide significant underlying support for gold's advance. Fundamentally, last Friday's US Non-Farm Payrolls data, showing a mere 50,000 jobs added, indicated continued weakness in the US labor market. Furthermore, Tuesday's US CPI data came in below market expectations, signaling a mild and moderating inflationary environment. This has reinforced expectations for the Fed to cut rates twice this year. Additionally, geopolitical risks have recently intensified, including the ongoing Russia-Ukraine conflict, potential US military action against Venezuela, considerations for military action against Iran and imposing additional tariffs, strategic interests in Greenland straining US-Europe relations, and a criminal investigation involving the Fed Chair raising concerns about the central bank's independence. These factors have collectively fueled market risk aversion, strengthening gold's safe-haven appeal. Looking ahead, expectations for Fed rate cuts, geopolitical tensions, and robust central bank purchasing continue to form crucial pillars of support for gold. On the daily chart, gold established another record high on Wednesday, indicating strong short-term momentum. Key support levels for gold are now seen at the psychological $4600 mark, followed by the $4570 level where it found support and rallied on Tuesday. Immediate resistance is observed near the day's high around $4640; the price has encountered selling pressure here multiple times. A successful break above this level could open the path towards the $4700 psychological barrier. Technical indicators are bullish: the 5-day moving average and the MACD indicator show golden crosses trending upwards, while the KDJ and RSI indicators also exhibit bullish golden crosses. The short-term technical picture suggests bulls are in control, with potential for further gains. Intraday outlook for gold: Weak US jobs data and mild CPI figures have strengthened expectations for two Fed rate cuts this year. Concurrently, concentrated geopolitical risks are stimulating safe-haven demand for gold. These factors are collectively driving the price to new record highs. The recommended trading approach is to treat the market with a range-trading mentality. Key support levels to watch are $4600, followed by $4570. Resistance is focused on the $4640 level; a decisive break above this point could target a move towards $4700.
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