Gold prices continued their strong performance during Asian trading hours, reaching a high of $4,675 per ounce, a new record high. Market risk aversion intensified, primarily due to US President Trump's latest tariff statements regarding Europe.

Trump announced that, starting February 1, a 10% tariff would be imposed on goods from Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom, and Norway until the United States is allowed to purchase Greenland.

This move has sparked concerns about potential retaliatory measures in Europe, benefiting gold, a traditional safe-haven asset. The EU responded swiftly, with EU ambassadors reaching a broad consensus on Sunday to increase communication to dissuade the tariffs and prepare for potential countermeasures should they be implemented.

This policy uncertainty has increased the risk premium for gold. On the other hand, a series of recent US economic data, including continued improvement in the labor market, has reduced market expectations for a near-term interest rate cut by the Federal Reserve.

Federal Reserve funds rate futures indicate that the next rate cut has been postponed from January and April to June and September. This expectation supports the dollar's performance while exerting temporary downward pressure on gold, a non-interest-bearing asset.

From a daily chart perspective, gold prices are maintaining strength around $4675, with a clear bullish trend. Prices are continuing to rise along the 5-day moving average, with limited short-term pullbacks, indicating strong bullish control. The 5-day, 10-day, and 20-day moving averages are aligned in a bullish pattern, with short-term moving averages providing close support, suggesting the daily chart structure is in a primary uptrend phase.

Although the MACD histogram has slightly contracted, it remains high and expanding, indicating strong momentum. The RSI has entered the strong zone above 70, suggesting a short-term overbought technical signal, but the overall trend remains bullish. Key resistance levels are $4700 and $4725, while support levels are $4630 and $4580. Overall, the probability of short-term high-level consolidation on the daily chart is increasing.

Editor's Note:

This round of gold price increases is driven by both risk premium and technical trend factors. The tariff friction between the US and Europe, and potential retaliatory measures from Europe, provide strong safe-haven support for gold, while strong US economic data and expectations of delayed interest rate cuts exert some downward pressure on gold in the short term.

The daily chart shows that the bulls still dominate, but the 4-hour chart's high-level consolidation suggests that short-term profit-taking may be increasing. The overall assessment is: the medium-term bullish trend remains intact, but short-term volatility is increasing at high levels, requiring a range-bound trading strategy.