Juejin Old Cat: 1.21 Evening Gold Strategy | 4890 is the Key Level for Bulls and Bears

This afternoon, spot gold continued its strong upward momentum, with the price rising from the early session low of 4757.82 to a intraday high of 4888.33. In the afternoon, it retraced to around 4865 for consolidation, showing a pattern of rising and then pulling back. Although bullish momentum has weakened somewhat, it still dominates the market.

On the news front, geopolitical tensions continue to escalate, coupled with a weakening US stock market driving safe-haven funds into gold, supporting the gold price to keep rising. However, as the price approaches a key resistance level, institutional funds show signs of profit-taking, and short-term buying strength has diminished, leading the market into a battle between bulls and bears.

From a technical perspective, the 30-minute chart shows that the price has broken through the previous consolidation range and is now in a retracement confirmation stage. 4890 is a critical level for intraday resistance and also the upper boundary of the previous consolidation platform, making it the core area of contention between bulls and bears tonight. The 4860 level below is the intraday central zone, with strong buying support. If it fails to hold, the price may further decline to the 4640 area.

Tonight’s trading strategy should revolve around the 4890 resistance level: if the price breaks through 4890 effectively with increased volume, it could target the 4920-4950 range; if the breakout fails, the price will return to consolidation, with the first support at 4860, and if that is broken, further decline to 4640 is possible. It is recommended to take light positions near support levels for long entries, and to look for short opportunities near resistance levels, with strict stop-loss settings to prevent false breakouts.

Disclaimer: This article is an original analysis by Juejin Old Cat and is for market reference only. It does not constitute any investment advice. The gold market is highly volatile; investors should make cautious decisions based on their own risk tolerance, and bear all trading gains and losses independently. The author and the publisher do not assume any joint liability.