On Monday (February 2nd) in early Asian trading, spot gold was trading around $4770 per ounce, having briefly approached the $4700 per ounce mark at the open. It is expected to test the $4500 per ounce level during the day. Gold and silver prices fell sharply last Friday, with gold recording its largest single-day drop since 1983 and silver recording its largest single-day decline on record. This followed US President Trump's announcement of nominating former Federal Reserve Governor Kevin Warsh to succeed Powell as Federal Reserve Chairman, a move seen as a hawkish signal by the market, triggering large-scale profit-taking in the precious metals market.

Latest news indicates that the US has expressed its willingness to negotiate with Iran. The Iranian Foreign Minister stated that the contacts have been effective and believes a fair agreement is possible, even in the short term. Ukrainian President Zelensky also indicated his readiness for "substantial" discussions, with the next trilateral meeting scheduled for February 4-5 in Abu Dhabi. These signals may ease geopolitical concerns and suppress gold prices in the short term. However, if negotiations break down or new conflicts erupt, safe-haven demand for gold will surge again.

Looking at the weekly chart for spot gold, the rapid pullback at the end of last week, erasing most of the gains, resulted in a very long upper shadow candlestick, turning what was initially a strong bullish trend into a topping signal, which may affect the strength of the short-term rebound. Currently, the moving averages are still perfectly aligned in a bullish pattern, and the MA5 has not yet reached its target, so it hasn't significantly impacted the overall trend, and there's no need to be overly concerned in the long term.

Looking at the daily chart for spot gold, the dramatic and rapid decline at the end of last week formed a rather alarming topping pattern, erasing all the gains for the week. Therefore, the short-term shift between bulls and bears is very evident. Currently, the overall bullish alignment of the short-term moving averages has not yet reversed. The key this week is whether the MA20 can hold; a break below this level would open up further downside potential, requiring adjustments to trading strategies. In summary, today's gold trading recommendations are: buy gold around 4600/4590, with a stop-loss at 4560, and targets at 4700/4900. If it breaks above 4900, continue the trend and look towards 5000 and above.

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.