Around $4,850: The battleground between bulls and bears

As shown in the chart, gold prices are currently at a critical stage where technical factors and fundamental factors converge. The interaction between bullish and bearish factors leads to the narrowing and consolidation of price fluctuations in the short term.

question:

1. Should big funds push up gold prices? This will free up funds trapped at high prices.

2. Should big funds continue to sell? The presence of large numbers of investors seeking buying opportunities increases the cost of further selling.

Currently, astute investors find themselves in a very paradoxical position.

Summary:

1. The price range between $4,800 and $4,900 has become a major consolidation area, with bulls and bears fiercely fighting for control.

2. As long as gold prices remain above $4,700, day traders should continue to focus on buying dips and entering long positions at lower prices.

3. This week we continued the strategy of buying on dips, triggering one or two profit signals every day, with profits exceeding 100 points, and profits per order exceeding US$10,000. We will continue this strategy.

I will be sharing the signals live on the channel.

Important news and policy summaries

1. Dovish outlook supports the market: The market is betting that the Federal Reserve will cut interest rates again in 2026. ADP’s weak employment data reinforced this expectation.

2. The U.S. dollar index hit a two-week high, suppressing the price of gold priced in U.S. dollars.

3. Iran and the United States agreed to hold talks, which eased market concerns about large-scale military conflicts and weakened the safe-haven appeal of gold.

4. Incidents such as the U.S. Navy shooting down an Iranian drone will temporarily increase the need for shelters.

5. Main focus (February 6): US non-farm payrolls data in January.

The data results will directly affect the Fed’s interest rate cut expectations and the performance of the US dollar, making it the most important catalyst for today’s market trends. Gold prices are currently experiencing a critical turning point.

Key Support Area: The area around $4,800 is the current market center.

Meanwhile, the price range between $4,880 and $4,900 is considered a former consolidation platform and cost zone for buyers, forming strong support.

Therefore, the reaction of gold in this area is extremely important.

Upside Resistance and Momentum: Gold prices have fallen recently after failing to break above the $5,100 level. The main resistance levels are located at $4993 (50% Fibonacci retracement level) and $5134 (61.8% Fibonacci retracement level).

Technical indicators suggest gold will need a new catalyst to break out, but gold remains in a long-term uptrend.

In short, the $4800-4900 range is the lifeline of today’s long-short struggle.

Before the release of non-agricultural data, it is recommended to pay careful attention to the market, or use a small amount of funds to test the market, focus on risk management, and wait for the data before making other decisions.

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