Gold prices were steady between $5,470 and $5,600. For Forex: XAUUSD by Freja_GoldGuide — TradingView

Gold prices were steady between $5,470 and $5,600.

After the Federal Reserve’s decision early this morning, spot gold prices fluctuated sharply, showing a general pattern of “rumored buying, confirmed selling.”

**Significant rise:** Affected by the Federal Reserve’s suspension of interest rate cuts (maintained at 3.50%-3.75%) and accommodative stance, gold prices strongly broke through the key psychological mark of US$5,500 in early Asian trading, hitting a historical high of US$5,598.75 per ounce.

There are two main technical reasons for this large fluctuation:

First, the price has risen sharply in the short term, putting gold in the overbought area and requiring a price correction;

Secondly, short-term bulls took profits after absorbing the good news, causing prices to fall.

**Infrastructure:** Despite the intraday volatility, the overall upward trend remains.

**Key Support:** The $5250-5300 range represents an important area of ​​previous trading volume.

**Main Support Levels:** Four major factors combined:

1. Although the January decision to “pause interest rate cuts” clearly ruled out the possibility of raising interest rates, Fed Chairman Jerome Powell also signaled an expansionary monetary policy, claiming that action would be taken if inflation fell or the labor market weakened.

The market interpreted this as the continuation of expansionary monetary policy, and the interest rate cut was only postponed. This lowers expectations for real interest rates, which is directly positive for gold.

2. In 2025, global central banks’ net purchases of gold will reach 1,120 tons, with purchases in January 2026 setting a new record.

This is not just a tactical move, but a long-term strategic reflection of the diversification of global reserve assets and declining confidence in the US dollar, providing strong support for gold prices.

3. Declining market confidence in fiat currencies (especially the U.S. dollar) and concerns about U.S. fiscal policy uncertainty have led to increased U.S. dollar selling.

The dollar index fell to its lowest level in four years, making dollar-denominated gold cheaper for holders of other currencies, further fueling demand.

4. The current geopolitical situation in the Middle East and Russia-Ukraine relations remain unresolved. Model calculations show that the geopolitical risk premium currently accounts for 47% of gold’s total risk premium, greatly extending the time for capital to flow into gold as a safe-haven asset.

Short-term trading: The market is currently very volatile, and opportunities and risks coexist.

Watch: $5480-5470 (current support) and $5250-5300 (key support). If gold prices fall to these levels and stabilize, this could be a good trading opportunity in the short term.

Strict stop-loss orders should be set to prevent violent fluctuations caused by unexpected events.

Day trading strategies:

Purchase: $5490-5500
Stop loss: $5480-5470
Take profit: $5550-5600
Important reminder: Be careful when selling short.

Thank you for your attention. Welcome to my channel for discussion. I will use my experience to guide you in your trading.