On Tuesday (February 3) in early Asian trading, spot gold traded around $4734.70 per ounce. Gold prices fell more than 4% on Monday, pressured by expectations that the new Federal Reserve chairman might favor interest rate cuts and a stricter balance sheet policy. Increased margin requirements exacerbated the sell-off. However, the renewed US government shutdown and potential delays in employment data led to a slight recovery in gold prices.

This sharp correction occurred after President Trump nominated former Federal Reserve Governor Warsh as the next Fed chairman. The market anticipates that the new chairman might favor interest rate cuts and a stricter balance sheet policy. Meanwhile, the strengthening of the US dollar index to a more than one-week high also put pressure on gold prices. Bitop analysts pointed out that the price plunge squeezed out some speculative trading, helping to cool the market. However, the report believes that the current environment does not create conditions for a sustained reversal in gold prices, and investors generally remain optimistic about upside potential.

From the daily chart for spot gold, yesterday's price action saw a low followed by a rebound, resulting in a large bearish candlestick with a long lower shadow. Today, further rebounds are possible; however, the MACD indicator has already issued a death cross signal, and the upcoming resistance from the MA5 moving average suggests that the rebound may be limited in the short term. The effectiveness of the MA5 resistance should be closely monitored.

From the 4-hour chart for spot gold, after a significant pullback, the price rebounded after testing a low near 4402. However, the MACD indicator has not yet issued a golden cross signal, suggesting that the price may still have a chance to turn downwards during the day. The key support level to watch is the 4800 psychological level. Resistance: 4820-4830-4840 Support: 4810-4800-4790.

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.