Spot gold saw slight gains in early Asian trading on Friday (October 3), currently trading around $3,862.72 per ounce. After reaching a record high of $3,896.60 per ounce yesterday, it plummeted sharply, fluctuating nearly 2% daily before closing slightly lower. This sharp volatility in the gold market was directly triggered by a speech by a Federal Reserve official. On Thursday, Dallas Fed President Logan publicly stated that the Fed's September rate cut was more of an "insurance" measure against job market risks, and emphasized the need for "caution" regarding further rate cuts. These hawkish remarks instantly shattered the market's rosy illusions that the Fed was about to embark on a cycle of aggressive rate cuts.

The gold market is at a delicate crossroads. In the short term, the hawkish warnings from Federal Reserve officials and the cautious sentiment triggered by the lack of data could indeed curb the rapid rise in gold prices, and even trigger more high-level volatility and profit-taking. However, in the long term, the Fed's interest rate cut cycle has already begun, and global political and economic uncertainty is high. Gold's value as a safe-haven asset and anti-inflation tool remains strong.

From a weekly perspective, spot gold prices continued their strong momentum this week, successfully breaking through the 3850 mark, marking seven consecutive days of gains. At the current pace, there is a strong chance of hitting the 4000 mark in the future. The moving averages currently show a perfect bullish alignment, but it is important to note that there is still some distance from the current price. Furthermore, the MACD indicator is clearly overbought, suggesting a short-term correction. Therefore, caution should be exercised when chasing prices at excessively high levels.

Looking at the daily spot gold chart, since breaking through the 3450 level, the price has shown little sign of stopping, continuing its upward surge. This is a combination of market fundamentals and technical factors. Therefore, it's important to trade with the trend until the uptrend ends. However, given the potential for significant volatility with the release of the non-farm payroll data tonight, it's advisable to buy on dips before the release, but with proper risk management. Resistance: 3855-3868-3880. Support: 3840-3830-3820.

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.