Spot gold continued its upward trend in early Asian trading on Friday (October 17), rising 1.24% to a new all-time high of $4,379.38 per ounce. This represents a gain of over $50 from Thursday's closing price, bringing it up nearly 9% so far this week and a strong probability of its ninth consecutive weekly gain. Gold prices surged 2.8% on Thursday, marking their fourth consecutive day of gains, closing at $4,325.85 per ounce. Market expectations are that the Federal Reserve will cut interest rates by 25 basis points in October and possibly another 50 basis points in December. SPDR Gold Holdings increased significantly, and HSBC also released a bullish report. Furthermore, the ongoing US government shutdown and international trade tensions are attracting safe-haven buying to support gold prices. Multiple factors, including central bank gold purchases and the trend toward de-dollarization, are also providing upward momentum for gold prices.

Despite the bright outlook for gold, there are still concerns. In the short term, gold prices may experience a correction as profit-taking pressure increases after a period of continuous gains. Furthermore, if economic data beats expectations or there is a turnaround in US-China trade negotiations, gold's upside may be limited. Federal Reserve officials' pessimism about inflation may also lead some policymakers to hold back on rate cuts, which could create headwinds for gold. While the tight housing market won't trigger a bubble, if credit concerns spread, they could further impact overall economic stability.

From the daily chart of spot gold, although it experienced a sharp decline after breaking through the 4,000 mark last week, gold prices have reopened higher this week, having successfully broken through the 4,100 mark and continuing to attempt to break new records. Therefore, it is advisable to adhere to trend-following trading principles at this stage. As for upward potential, use only large range integers, such as 4,200 or even 4,300, as a guide. Currently, the moving average and MACD indicators are providing bullish signals, making a significant pullback unlikely in the short term.

Looking at the 4-hour spot gold price, it's maintaining a strong momentum, continuously breaking through historical highs. Based on current market fundamentals, it's highly likely to expand further this year, even approaching the 5,000 mark. Currently, the short-term moving averages maintain a bullish trend, and the MACD indicator is also at a high level. However, caution is advised against overbought risks. Trading strategies should focus on buying on dips. Resistance levels: 4368-4380-4390; Support levels: 4350-4340-4330.

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.