Market Analysis On January 23, US President Biden once again made startling remarks, stating that European countries would face "significant retaliation" if they sold off US assets due to tariff threats related to Greenland, further pressuring them to comply with an emerging agreement concerning the island's future. This boosted safe-haven demand, leading to a sharp rise in gold and silver. The US core PCE price index for November met expectations. US initial jobless claims for the week of January 17 came in at 200,000, against an expectation of 210,000. Today's key focus is on the Bank of Japan's interest rate decision and its economic outlook report. In the evening, attention turns to the US S&P Global Manufacturing PMI Flash and Services PMI Flash for January at 22:45, followed by the final US University of Michigan Consumer Sentiment Index and the final one-year inflation expectation for January at 23:00.
The gold market opened at 4832.9 yesterday, initially retreated to a daily low of 4770.6, then fluctuated and rose. During the US session, driven by fundamental factors, it surged strongly, breaking through the previous day's high to reach a peak of 4934.8 before consolidating. The session finally closed at 4937.5, forming a large bullish candlestick with an extremely long lower shadow. Following this pattern, today's strategy is to buy on dips. Buy around 4890 with a stop loss at 4884, targeting 4920 and 4952. A break above these levels could see a move towards 4967, 4982, and the resistance zone of 5000-5012.
The silver market opened at 91.052 yesterday, initially dipped to a daily low of 90.723, then staged a powerful rally to a new all-time high of 96.656 before consolidating. It closed the session at 96.176, forming a large bullish candlestick with a very long lower shadow. This bullish engulfing pattern suggests a strategy of buying on dips today. Buy around 94.5 with a stop loss at 94.2, targeting 96, 96.7, 97.5, and 98.
The EUR/USD pair opened at 1.16836 yesterday in early trading, dipped to a daily low of 1.16686, then experienced a strong rally to a high of 1.17558 before consolidating. It closed at 1.17550, forming a large bullish candlestick with a long lower shadow. This pattern, resembling two bullish candles sandwiching a bearish one, indicates a strategy of buying on dips today. Enter long positions around 1.17200 with a stop loss at 1.17000, targeting 1.17550, 1.17800, and the 1.18000-1.18200 range.
The crude oil market opened at 60.74 yesterday, experienced a slight rally to a daily high of 60.9, then underwent a sharp decline to a low of 59.04 before stabilizing. It closed the session at 59.69, forming a large bearish candlestick with a very long lower shadow. Following this pattern, today's strategy is to sell on rallies. Sell around 60.5 with a stop loss above 60.9, targeting 59.5, 59, 58.5, and 58.
The Nasdaq index opened at 25406.83 yesterday, initially declined to a daily low of 25337.16, then rallied strongly to a high of 25598.04 before consolidating. It closed the session at 25480.88, forming a spinning top candlestick pattern with an upper shadow slightly longer than the lower shadow. Given this formation, today's strategy is to sell on strength. Sell around 25560 with a stop loss at 25620, targeting 25450, 25400, and 25350.
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