On Thursday (January 29) during the Asian session, spot gold traded around $5412 per ounce. After hitting a record high of $5596.33 per ounce on Thursday, gold prices fell sharply to a low of $5104.98 per ounce, as investors chose to take profits after prices reached record highs. However, supported by economic and geopolitical uncertainties, gold prices are still on track for their best monthly performance since the 1980s.

While the surge and subsequent pullback in gold prices was influenced by profit-taking and easing short-term concerns, geopolitical stalemates, economic policy expectations, and institutional allocation demand collectively provided a solid support base. Despite increased market volatility, gold's status as the king of safe havens remains unchanged. Investors should closely monitor the situations in the Middle East and Russia-Ukraine conflict, news related to Trump, and the developments of the US government shutdown, as these factors will determine the next direction of gold prices.

From the daily chart of spot gold, the recent price increase has been quite dramatic, structurally showing a series of consecutive positive days with no obvious signs of pullback. Therefore, further upside potential is expected in the short term, depending on the impact of the Fed's interest rate decision. Currently, the moving averages are perfectly aligned in a bullish formation, but it's worth noting that there's still some distance from the current price. The MACD indicator below maintains a strong bullish signal.

From the 4-hour chart of spot gold, international gold prices have entered an unstoppable phase this week, continuously hitting new historical highs, currently above the 5500 mark. This astonishing speed of ascent has seen no significant correction, demonstrating the strength of the bulls. The moving averages are naturally aligned in a bullish formation, but attention should be paid to potential divergence. The MACD indicator still gives an upward signal, therefore, the recommended strategy is to buy on dips.

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.