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      Pullbacks Present Opportunities; A Break above 4700 Is Just Around the Corner

      Alan

      Commodity

      Summary:

      Although gold has entered a short-term correction phase, the overall trend remains bullish.

      Buy

      XAUUSD

      EXP
      Trading

      4602.26

      Entry Price

      4720.00

      TP

      4510.00

      SL

      4662.60 +66.17 +1.44%

      0

      Point

      Flat

      4510.00

      SL

      CLOSING

      4602.26

      Entry Price

      4720.00

      TP

      Fundamentals

      Gold prices experienced a short-term correction after a recent period of robust appreciation and record-breaking highs, driven by two primary forces.
      The first force involves macroeconomic and policy factors: weakening U.S. inflation and employment data, mounting market expectations for future Federal Reserve interest rate cuts, and political shocks threatening the Fed’s independence have collectively created a safe-haven demand and increased uncertainty regarding monetary policy, providing a strong bullish foundation for gold.
      The second force pertains to liquidity conditions and technical analysis: substantial long-term gold ETF inflows since late 2023 have solidified the bullish base, while short-term capital has taken profits and rebalanced near record highs. Additionally, news cycles in U.S. trading hours have contributed to a pattern of upward movements followed by retracements, reflecting typical market behavior. The sustained net inflows into ETFs and intraday capital flows remain critical indicators for predicting the continuation of the bullish trend.

      Technical Analysis

      Pullbacks Present Opportunities; A Break above 4700 Is Just Around the Corner_1
      In the 4H timeframe, the overall candlestick movement of gold maintains a clear bullish upward trend. While the short-term SMAs are consolidating, the medium- and long-term SMAs remain in a bullish alignment, indicating that the medium- to long-term trend continues to be bullish. Although recent short-term retracement occurred today, prices recovered and closed above the MA20, suggesting a significant reinforcement of the bullish momentum and increasing the likelihood of continued upward movement.
      Currently, gold is supported around the 4580 level, with prospects for an ongoing upward trend toward the 4640 resistance level. A break above this resistance could open the path toward the 4700 target zone. Conversely, if gold falls below 4580, a deeper correction is likely, with the initial support level at 4550.

      Trading Recommendations

      Trading Direction: Buy
      Entry Price: 4600.00
      Target Price: 4720.00
      Stop Loss: 4510.00
      Valid Until: January 29, 2026 23:00:00
      Support: 4580.00, 4550.00
      Resistance: 4700.00, 4728.00
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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