Gold prices rebounded slightly in early Asian trading on Tuesday (October 28), with spot gold trading at $4,002.12 per ounce. Yesterday, gold prices experienced a significant upswing, briefly falling below $4,000 per ounce, hitting an intraday low since October 10th at $3,971.38 per ounce before closing at $3,981.80, a 3.2% drop. This decline is driven by both cooling safe-haven demand due to easing Sino-US trade tensions and mixed market expectations regarding the Federal Reserve's interest rate decision and the global economic outlook.

The current pullback in gold prices may present an opportunity to invest at a low level, but caution is advised. Close attention is recommended for the Federal Reserve's interest rate decision and post-meeting statement, as well as the outcome of Thursday's meeting between US and Chinese leaders. If trade negotiations achieve a substantial breakthrough, gold prices could come under further pressure; conversely, if negotiations stall, safe-haven demand for gold could quickly rebound.

From the daily spot gold chart, gold prices continued their downward trend yesterday, forming a large real-body bearish candlestick pattern. The MACD indicator is currently forming a death cross, indicating that the market is still in a correction phase and may see further downside potential. It is recommended to monitor the upward pressure from the MA5 moving average.

From the 4-hour spot gold chart, gold prices rebounded slightly above 4150 last week before encountering resistance and continuing their downward trend. However, the decline slowed after breaking below the 4000 mark. The MACD indicator is still forming a death cross, suggesting that the correction may not be over yet. Focus on whether the 4000 mark can form effective resistance during the day. Resistance: 4000-4010-4020; Support: 3990-3980-3970.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.