Gold market analysis

"Gold Price Expected to Fluctuate Above $4,600" 1/4/2026 10:45 Completed 

US President Trump said that the US has achieved the goal of weakening Iran's military strike capabilities and the war can end without an agreement between Iran and the US. Regarding the Strait of Hormuz, he said that whoever uses it should be responsible for its security and it is impossible for the US to be involved for a long time. Despite this, the US and Iran are still attacking each other. The Revolutionary Guards of Iran warned on Tuesday that from 8 p.m. Tehran time on Wednesday, 18 US companies would be targeted, including Microsoft, Google, Apple, Intel, IBM, Tesla and Boeing. 

The financial market responded positively. The three major US stock indices rose sharply last night. The Nasdaq Composite Index jumped nearly 796 points, or over 3.8%, the S&P 500 rose nearly 185 points, or over 2.9%, and the Dow Jones Industrial Average also climbed over 1,125 points, or nearly 2.5%. With the inverse relationship between oil and gold persisting, the gold price broke through the psychological resistance of $4,600. The spot gold price reached as high as $4,724.21 this morning, approaching the 50% retracement level of the biggest decline since March 2nd, which is $4,759.43. The next level is at the 45-degree angle of Gann's theory at $4,810. In other words, the gold price is approaching a short-term strong resistance. 

As the spot gold price rose by only over 40 dollars this morning, which is less than the normal range of 50 to 80 dollars, there is still a chance for it to challenge 4759.43 dollars within the day. However, it should be noted that the spot gold price has shown a long bearish candle with a lower high and lower low on the hourly chart. Therefore, before the price breaks through 4724.21 dollars, the possibility of further correction is relatively high. The 50SMA on the hourly chart (currently around 4572.5) can be regarded as a strong support level. However, due to the imminent end of the US-Iran conflict, a correction to the 20SMA (currently around 4633) will have strong support, and the previous strong resistance at 4600 dollars has now become a strong support. It is expected that the price will fluctuate above 4600 dollars in the short term. Currently, the 50SMA on the daily chart has dropped to around 4954 dollars, which is very close to the 90-degree angle of Gann at 4960 dollars, indicating that this level will be the ultimate resistance for the current rebound wave of the gold price. 

The above content is for reference only and does not constitute investment advice.