On Thursday (October 30) in early Asian trading, spot gold fluctuated narrowly around $3940 per ounce. Yesterday, the Federal Reserve announced a 25 basis point rate cut, but Powell bluntly stated at the press conference: "There is strong disagreement within the Committee regarding whether to cut rates in December, and further rate cuts are by no means a certainty; monetary policy is not on a predetermined track." This "hawkish rhetoric" ignited the dollar and US Treasury yields, jointly pushing up the opportunity cost of holding gold. The cost for overseas buyers to purchase gold has increased significantly, putting considerable pressure on gold prices.

The highlight of today's trading session is undoubtedly the meeting between the leaders of China and the United States in Seoul, South Korea. If trade negotiations fail to achieve a breakthrough, it may provide short-term safe-haven support for gold prices; conversely, if the negotiations progress optimistically, coupled with a further cooling of expectations for a December rate cut, gold prices may face greater downward pressure. Furthermore, both the Bank of Japan and the European Central Bank are expected to keep interest rates unchanged, but any unexpected hawkish statements could exacerbate market volatility.

Looking at the daily chart for spot gold, yesterday's price action saw significant volatility, resulting in a doji candlestick pattern. The downward trend remains intact, and the MACD indicator continues its downward crossover, indicating that the market is still under bearish control. The resistance level to watch is the 5-day moving average (MA5).

Looking at the 4-hour chart for spot gold, since the formation of a double top, the price has fallen by nearly $500. While there was a rebound yesterday, it failed to break through the $4030 level. However, the support at $3920 is quite strong, and the price is currently consolidating. Resistance: $3950-$3960-$3970; Support: $3940-$3930-$3920.

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.