January 14th Precious Metals Short-term Observation

In the evening, the battle between bulls and bears in precious metals has entered a tense phase. The previous trading rhythm is very critical—be prepared for low-position buying during repeated tests of the range.

The news is somewhat interesting, with two forces pulling in opposite directions. On one side, the US December core inflation data has declined as expected, reinforcing market expectations for rate cuts within the year. Additionally, the recent escalation of tensions in the Middle East has prompted safe-haven capital to move, pushing gold prices to a new stage high. On the other side, the problem is that gold prices are now near historical highs, and bullish traders are beginning to take profits. Plus, there are uncertainties about the Federal Reserve's future policy path, and the upward momentum is clearly weakening.

Technical signals: Gold prices face significant resistance above 4630. The key zone between 4638-4640 has been tested multiple times but has not been effectively broken through. The 15-minute candlestick chart shows signs of volume contraction at high levels, indicating a short-term correction signal. However, on a larger scale, the trend remains bullish, and this pullback is essentially a technical correction. On the 1-hour chart, the MACD has re-confirmed in the bullish area, with increasing red bars, and DIF and DEA forming a golden cross and diverging upward, indicating that the short-term upward momentum has not fully dissipated.

Trading strategy:

Look for opportunities to go long within the 4620-4630 range, with targets set at 4640-4665.