[Bitop Market Review] Gold Strategy Analysis

2024年02月05日 10:19:29

US and UK Continue to Strike Houthi Militants, Will Gold Rise?


During the Asian trading session on Monday, February 5, the current spot gold price is trading around $2028 per ounce. Last Friday, the US non-farm payroll report showed an addition of 353,000 jobs in January, maintaining the unemployment rate at 3.7%. As the US non-farm payroll report exceeded expectations, the US dollar strengthened, exerting pressure on gold.


According to reports citing US officials, on February 3, the US and the UK carried out strikes on at least 30 Houthi militia targets in Yemen. This marks the second wave of attacks aimed at further weakening Iran-backed groups, which have been continuously attacking US military bases and international shipping in the Middle East after the Houthi war. These geopolitical tensions could serve as a supportive factor for gold. Additionally, investors still need to pay attention to the US ISM Services PMI data scheduled for release tonight at 23:00, as these events may influence the gold price trend.


Gold retraced from its highs last Friday, failing to break through the previous high points. The stronger-than-expected non-farm payroll data boosted the US dollar, causing gold to drop below $2040 and close. The weekly chart formed a small bullish doji candlestick, continuing to return to a range-bound and choppy pattern. The news failed to break the existing pattern but did break the previous day's upward channel. The weekly and daily charts continue to maintain a consolidating and contracting trend.


Gold's single negative candlestick downturn retraced all the previous upward momentum, returning to the $2030 low point, which served as a stabilization point last week. The market continues to exhibit a washout pattern of probing higher and pulling back, with significant range fluctuations but poor sustainability. The choppy pattern is the main characteristic. It is expected that the early part of this week will continue the choppy consolidation, with the relationship between strength and weakness remaining uncertain. Overall, for short-term gold operations, it is advisable to focus on resistance around $2045-$2050 and support around $2025-$2020.


Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.