Gold market analysis

"Gold Price May Have Hit a Short-Term Peak" 23/1/2026 10:06 Completed 

Although Trump stated that the US would not use force to "possess" Greenland, and said that the US and NATO member states had reached a framework agreement on the strategic deployment of Greenland and the Arctic region, paving the way for a long-term agreement, it was reported that Greenland was even willing to cede a small piece of land to the US to build a military base. However, Denmark firmly stated that there was no room for discussion on the sovereignty of Greenland. Perhaps because no details of the agreement have been made public yet, and even if the Greenland factor is excluded, the Middle East issue and the monetary policy direction of the Federal Reserve after Powell have all become excuses for the market to push up the gold price. 

Spot gold prices continued to rise after breaking through the psychological threshold of $4,850 in the early morning of New York yesterday, and then surpassed $4,900, reaching a high of $4,940.81. Today, gold prices opened higher in the Asian market, reaching a high of $4,967.48 before encountering significant selling pressure, and dropped to a low of $4,937.39. Technically, gold prices have shown a bearish engulfing pattern on both the 5-minute and 1-hour charts. It was previously noted that $4,960, located at the 90-degree angle of the Gann grid, is a strong resistance level. This morning, gold prices slightly broke through this level but then rapidly fell back. Subsequently, they rebounded continuously, but have not yet been able to regain the $4,960 mark. 

The resistance at $5,100 for gold prices is huge. 

From the hourly chart, using the Fibonacci extension lines to measure the movement since January 16th, the high price of gold this morning has approached the 61.8% extension level at $4,972.7. Of course, this does not mean that the price of gold will definitely not rise further. Such calculations need to be made in advance by investors and used as part of their strategy to turn into profits. If the price of gold can break through the top and reach a new high, the next major resistance level is at the 135-degree angle at $5,110. If the price of gold reaches the 100% Fibonacci extension level, it could rise to $5,106.47. Therefore, it can be expected that the price of gold will encounter significant resistance above $5,100. 

Firstly, the gold price faces significant resistance at $4,960. Once it breaks through this level, it will encounter the psychological barrier of $5,000, which may entice the market to push it through. However, there is a risk of a rapid pullback after a break, and it is unlikely to surge directly to $5,110. If the gold price fails to reach a new high after the European market opens, it is likely that a short-term top has emerged. The first target for a test would be $4,900, followed by a test of support at $4,810. The $4,660 level, which is at the horizontal angle, appears to be a more supportive price at present. 

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