In the early Asian session on Wednesday (January 8), spot gold fluctuated in a narrow range and is currently trading around $2,648.80/ounce. Due to the uncertainty of Trump's policies and the turbulent geopolitical situation, gold prices rose to around $2,664.15/ounce during trading on Tuesday, close to the three-week high set last Friday. However, due to the strong performance of U.S. service industry data, job vacancies increased by 259,000, indicating that the possibility of a sharp interest rate cut by the Federal Reserve has decreased. The U.S. dollar index rebounded, and the 10-year U.S. Treasury yield hit a new high in more than half a year, narrowing the gold price increase to around $2,648.53/ounce.

Looking ahead to the market, as Trump prepares to take office in January, his policies will promote economic growth and increase price pressures, which will still put gold prices under pressure in the short term. However, Trump's tariff policy will also increase market concerns. During the Trump administration, the U.S. debt situation may worsen and the fiscal deficit may increase, which will fuel the continued safe-haven demand for gold. And the bullish factors supporting gold prices in 2024 are still continuing. The Fed's interest rate cuts, central bank buying and geopolitical tensions will continue to push gold to new highs.

This trading day will usher in the US January ADP employment data and the Fed's meeting minutes. Investors need to pay close attention. In addition, pay attention to the speech made by Fed Governor Waller on the economic outlook at the OECD meeting.

From the daily level of spot gold, after the first drop and then rise at the beginning of the week, in fact, the current gold price operation space has not changed much. It is still hovering in the oscillation range. I believe that we need to wait for the release of non-agricultural data before we have the opportunity to try to break the rhythm. Moreover, the moving average group tends to flatten at this stage, and the MACD indicator has not returned to above the 0 axis. Therefore, it is recommended to focus on the 2615-2665 range at the macro level.

From the 4-hour level of spot gold, due to the sharp rise in US bond yields, gold fell sharply at the opening, but as the US dollar index was hit by Trump's remarks, the gold price soon rebounded to a position slightly below 2650, which formed certain positive signals in the short-term trend, such as the moving average group turning upward, and the MACD indicator is expected to generate a golden cross signal in the future market, but it is more stable to keep selling high and buying low. Pressure: 2660-2670-2680 Support: 2645-2638-2630.

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.