On Thursday (January 8th) in early Asian trading, spot gold fluctuated slightly higher, currently trading around $4460 per ounce. Yesterday, spot gold once plunged more than 1.6%, hitting a low of $4423.49 per ounce, and finally closed down 0.9% at around $4456.32, while US gold futures also fell 0.7%. This correction, seemingly sudden, actually concealed a complex interplay of forces: profit-taking by investors, weak US employment data, escalating geopolitical tensions, and the People's Bank of China's continued gold hoarding.

This decline in gold prices is more of a technical adjustment, with profit-taking and short-term selling pressure dominating the trend, but fundamental support remains solid. Weak US employment data reinforces expectations of interest rate cuts, geopolitical turmoil boosts safe-haven demand, and the People's Bank of China's continued purchases provide physical support. With these factors intertwined, the medium- to long-term upward channel for gold remains intact. Market focus shifts to Friday's non-farm payroll data. If it continues to show a cooling labor market, gold prices are likely to quickly recover lost ground and even challenge previous highs.

From the daily chart for spot gold, yesterday's price action saw a volatile decline, resulting in a candlestick pattern with a significant bearish body. It's worth noting that the price has now retraced to near the 5-day moving average (MA5). The MACD indicator's two lines are converging, suggesting a potential turning point. Once the moving average support holds, the price may retest the higher resistance levels.

From the 4-hour chart for spot gold, after rebounding to the 4500 level, the price encountered resistance again. The MACD indicator has issued a death cross signal, indicating that the price is currently in a correction phase. However, the indicator lines are still operating in the strong zone above the zero line, suggesting that the pullback may be relatively limited. Intraday, pay attention to the resistance levels of the MA5 and MA10 moving averages. Resistance: 4440-4450-4460 Support: 4430-4420-4410

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.