Gold market analysis

"Gold Price Expected to Challenge $5,110" 9/2/2026 10:15 Completed 

Although the gold price rose repeatedly throughout last Friday, it failed to break through the $5,000 mark. However, this morning in the Asian market, it opened with a gap and broke through the $5,000 threshold, reaching a high of $5,046.79. It then fluctuated and dropped to a low of $4,976.52 before rebounding again and once more rising above the $5,000 level. 

Gold prices gapped up in the Asian market, likely related to the Liberal Democratic Party's (LDP) sweeping victory in Japan's House of Representatives election. The LDP won 316 seats in yesterday's election, accounting for nearly 68% of the 465 contested seats, exceeding two-thirds. This is the largest number of seats the LDP has won in the House of Representatives since World War II. Additionally, the Japan Innovation Party, which forms a coalition government with the LDP, also secured 36 seats, bringing the coalition's share of seats in the House of Representatives to 75.7%. The LDP once again became the largest party in the House of Representatives, which is conducive to smooth governance in the future. 

The key short-term support level is $4,960. 

However, the landslide victory of the Liberal Democratic Party led by Kishida Fumio has raised concerns among the market about the deterioration of Sino-Japanese relations, providing an excuse for the sharp rise in gold prices. But the Nikkei index also opened higher this morning and reached a new record high of 57,629.5 points, reducing market risk aversion. The USD/JPY pair rebounded from the intraday low of 156.22 to 156.68, and the rebound in gold prices was short-lived, with the $5,000 level regained and then lost again. 

From the hourly chart, the upward pattern of gold prices has not been disrupted. However, the recent range has expanded to over 100 dollars, widening the gap between the high and low points. Technically, the first support level is at 4964.73 dollars, the early Asian session, and the 20SMA (currently around 4933.55) is the next important support. It should be noted that 4960 dollars is at a significant support level (or resistance) at the 90-degree angle of the Gann Square. Therefore, it is expected that gold prices will consolidate above 4960 dollars and then break through the 5000-dollar mark to challenge 5110 dollars. However, investors should still be aware that the previous high of 5092.31 dollars may become a double top resistance during the process of gold prices challenging 5110 dollars. 

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