February 3, 2026 Spot Gold Morning Analysis

Currently, spot gold is in a "main upward trend with short-term fluctuations" pattern. There's no need to be scared by recent price swings. The core logic is simple: central banks around the world are still aggressively buying gold to support the market, with monthly gold purchases exceeding 60 tons in 2026. The People's Bank of China has also been increasing its holdings, providing a strong long-term support for the upward trend.

Although the price recently fell from around $5600 to approximately $4800, this is just a normal correction after a sharp rally. In the short term, prices are mainly fluctuating between $4700 and $4950. $4700 is a key support level, and the $4900-$5000 range is the main resistance.

The Federal Reserve is likely to cut interest rates later, which is positive for non-yielding assets like gold. In terms of trading strategy, consider buying on dips near the $4780-$4800 range, with stop-losses set below $4760. The initial target is $4900-$4950. If the price rebounds to $5000 but cannot break through, you can take small short positions to quickly profit from the volatility.

Remember not to hold a full position. In a volatile market, set proper stop-losses, follow the big trend of central bank gold purchases and rate cuts, and prioritize steady gains over quick profits.