On January 23rd, for gold, two key points were presented yesterday. Firstly, to go long above the support of 4772 on any pullback—this was not vague guidance but a clear path charted for traders within the trend. If the gold price stabilized at this level, it would serve as the intraday long defense line; anyone who understood following the trend would not have missed this opportunity. The steady rise during the European session continued into the US session, breaking through the previous resistance area around 4850 and the historical high of 4888. At that point, participating in breakout longs was essential.
Yesterday, after breaking above the 4888 historical high during the US session, gold accelerated upwards, continuing to rise until the close. The daily candle closed as a large bullish candle with a lower shadow. The overnight session showed a rise without any significant pullback, closing near the highest levels. The message was clear: following a strong close in late trading, further momentum-driven gains were expected in the early Asian session today. An immediate long position at the open was the decisive move for trend followers—without hesitation or delay.
Indeed, the early Asian session today saw another direct, momentum-driven surge, with gold currently quoted around 4954. The price is poised to advance towards the key psychological $5,000 level as market chatter grows increasingly loud. Unquestionably, we maintain our bullish outlook. If you missed yesterday's consolidation and correction, avoid blindly jumping in today. A reminder on risk management: primary support below lies at the early session low of 4930. Holding above 4930 allows for continued long entries, targeting a move towards 5000. Secondary support is the role-reversal level at 4888, though it is currently too distant to realistically rely on for new highs, at least during the Asian/European sessions. It is suggested to go long directly on any dip, defending the 4930/36 area. If the price breaks to new highs during the afternoon European session, the long entry level should be adjusted higher, still targeting 5000. Once gold sustainably breaks above 5000, expect accelerated gains. The mantra remains: the upside is limitless, aiming for rallies measured in full hundred-dollar increments.
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