2026-01-07 01:26:11

The recent movement of the US Dollar Index really didn't disappoint. Yesterday, the support at the 98 level was clearly evident, with a long lower shadow bullish candlestick on the daily chart firmly defending the bottom. Currently, the market's risk aversion sentiment is competing with the Fed's rate cut cycle, and these two forces are pulling in opposite directions. But to be honest, the short-term boost from risk aversion is already diminishing marginally. Today, the focus is on the narrow range between 98 and 98.5. To break through this range, there must be strong fundamental drivers; otherwise, it's likely to remain a choppy market with resistance above and support below. The best approach in such times is to trade within the range, avoiding blindly chasing breakouts.

Gold, riding the wave of geopolitical risks, performed quite well yesterday. The escalation of the US-China situation combined with expectations of rate cuts created a powerful combo that should have strengthened gold prices. Early in the session, it surged toward 4500 but then pulled back. This kind of momentum tests traders' patience—don't get caught up chasing the highs; the rule is to buy on dips and avoid chasing after peaks. The daily chart shows a strong support at 4450, which is also where safe-haven buying from geopolitical tensions tends to cluster. Once touched, consider going long. The 4473 level on the hourly chart is the short-term support/resistance line; holding above it indicates continued strength. Keep an eye on the 4482 level in the early session—staying above suggests bulls still have momentum.

Looking upward, the psychological resistance at 4500 is significant; if it doesn't break, a pullback is likely. Once it stabilizes above 4500, the price could push toward the 4510-4520 range, where short positions could be considered. 4540 is a strong resistance level, a recent area of high-volume trading, and a good point to add to short positions. Don't forget to watch the US non-farm payroll data on January 9, as it can easily trigger technical volatility.

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GasGuzzler

· 01-07 22:58

That 98 hurdle is really hard to understand. If you ask me, just scalp within the range and don't think about going all-in at once. The psychological level of 4500 for gold is too strong. The early session's spike and pullback were purely trap trading. It's more reliable to wait until 4450 to get in. Remember to reduce your position when the non-farm payrolls come out; this data tends to cause sharp declines.

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AirdropNinja

· 01-07 01:54

The defense at this position is really tough, and we're about to cycle through another wave... Early trading saw gold surge past 4500 and then quickly retreat. I'm very familiar with this routine, and it's easy to get emotionally overwhelmed. Is 4450 really a stubborn level? It seems like every time it bounces back there. Non-farm payroll data is coming, and we'll have to watch the Fed's stance again... Range-bound oscillation is the most boring; you can't make big money but also can't lose big money. This wave is a clash between the safe-haven and rate-cut cycles; who will win is really hard to say. Don't chase after low buys; it sounds simple, but actually doing it can be deadly. The 4500 psychological barrier definitely has significance, but it still depends on the non-farm data.

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ContractFreelancer

· 01-07 01:52

98-98.5 This wave of position locking is really tight. Isn't it better to buy some dips at the low instead of chasing breakouts? --- 4450 this line must be watched closely. Once it breaks down, enter the market immediately. Don’t worry about the sharp rise scaring anyone away. --- Non-farm payrolls day again, gotta keep a steady mindset. This is when tests of patience are the hardest. --- Gold’s rhythm is indeed excellent. Seeing the early morning surge and pullback pattern so often, it’s easy to get caught. --- The US Department of Commerce situation heating up with expectations of rate cuts, gold prices do have a reason to strengthen. Just worried it might be a false rally. --- Range-bound oscillation is the most annoying, but also the most profitable time. The key is not to be greedy.

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DYORMaster

· 01-07 01:44

That level at 98 can indeed hold, but this poor market condition is really tough, and I'm just worried about getting caught chasing breakouts. Gold surged to 4500 and then pulled back. This trick is getting old; I still prefer to wait until 4450 before making a move. On Non-Farm Payrolls day, there will probably be some turbulence again. Be careful not to get caught in a spike. The USD is lacking rhythm in this wave; just stick to range-bound trading and swing strategies. The 4500 psychological level is key. If it can't break through, I expect a pullback. We'll look for opportunities then.

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GhostWalletSleuth

· 01-07 01:33

98 really can't hold up, this wave of the dollar is a bit weak --- Don't be soft at 4450, we must hold the key geopolitical positions --- On non-farm day, there will be another bloodbath. Don't sleep too soundly this weekend --- Range volatility is the most disgusting, it seems stable but it's all tricks --- Pushing back to 4500 again, gold is playing this psychological game --- When US officials warm up, they think gold will rise. This logic is too old-fashioned --- To be honest, the hedging boost effect has already peaked, it's hard to say how it will play out later

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