1.20 Gold Morning Analysis: Volatile at High Levels, Bullish Foundation Still Strong!

This morning, gold didn't surge further; it oscillated around $4670. After reaching a new high of $4690 yesterday, some funds took the opportunity to take profits, causing a slight pullback. However, the overall upward trend remains unchanged.

Why can it still stay steady? The core reasons are the same old ones: the Greenland dispute, Middle East tensions, and other geopolitical risks haven't eased, so safe-haven funds are still supporting it; central banks around the world continue to buy gold, with China's central bank increasing holdings for 14 consecutive months, providing a floor for gold prices; the market is also hoping for a rate cut by the Federal Reserve this year, which is still bullish for gold in the long term.

Today, focus on two key levels: first, the previous high zone at 4690-4700; if it can hold steady above this, it’s likely to push higher. Support levels are first at 4660, then at 4640. Holding these levels could allow the bulls to continue their momentum. Also, keep an eye on the US dollar index; if the dollar suddenly strengthens, it may temporarily suppress gold prices.

Trading Strategy: Avoid shorting easily; the trend is still upward. If the price stabilizes around 4660 during a pullback, consider small long positions. If it surges directly to 4690-4700 and encounters resistance, you can try short positions with small size, but be sure to set stop-loss orders to avoid being caught by high-level volatility.