Gold prices remained range-bound at high levels as risk appetite rebounded and profit-taking occurred.
2026-02-10 09:52:39
Gold prices (XAU/USD) retreated around $5035 in early trading on Tuesday, ending a two-day winning streak. As market risk sentiment gradually recovered, some funds withdrew from safe-haven assets, putting short-term pressure on gold.
From a market perspective, the recovery in risk appetite is one of the core factors suppressing gold prices. After the previous volatility, US risk assets have strengthened again, with the S&P 500 index continuing its rebound and approaching historical highs. Investors' increased risk tolerance has prompted funds to flow back into equity assets, weakening gold's defensive attributes.
Meanwhile, geopolitical tensions have eased somewhat. Iran stated that the latest round of communication with the United States on the nuclear issue has made progress, alleviating market concerns about further deterioration of the situation, and thus some of the safe-haven premium previously accumulated in gold prices has been absorbed.
However, from a medium-term perspective, the downside for gold remains limited. Data shows that central banks in major Asian countries increased their gold reserves for the 15th consecutive month in January, bringing their holdings to 74.19 million ounces. This continued allocation of gold by central banks reflects a long-term need to hedge against uncertainties in the global economic and financial environment, providing significant fundamental support for gold prices.
The market will now receive several key US macroeconomic data releases. Wednesday's employment data and Friday's consumer price index will provide further clues about the Federal Reserve's future policy direction. If the job market continues to cool or inflationary pressures show signs of easing, expectations of a weaker dollar may rise, thus providing new support for gold prices.
From a technical perspective, the pullback in gold after its rapid rise is more in line with the characteristics of a phased correction during an uptrend. The daily chart shows that gold prices are still trading within a medium-term upward channel, firmly above the major moving average system, and the trend structure remains intact.
From a technical perspective, the recent pullback has not broken the pattern of successively higher highs and lower lows, indicating that the bulls still control the medium-term trend. Momentum indicators have fallen from their highs, showing that short-term buying power has cooled somewhat, but it has not yet entered a clearly weak zone. The current adjustment is more like a digestion of the previous gains.
Regarding key price levels, the $5,000 mark is of great significance to the current trend. This level serves as both a psychological barrier and technical support; if gold prices can continue to stabilize above it, it will help maintain market confidence in the upward trend.
If the pullback extends further, the $4965 level corresponds to the previous breakout area and is close to short-term moving average support, which is expected to provide support for gold prices. Meanwhile, the area around $4920 is the lower edge of the upward channel, representing a crucial defensive level for the medium-term trend.
On the upside, gold prices will first face technical resistance around $5050, which is the short-term consolidation high. If prices break through and hold above this level, gold is expected to retest the intermediate high around $5085.
Once this level is broken, the technical structure will open up further upside potential for gold prices, with the area around $5150 becoming a target zone for medium-term bulls. Overall, unless there is a decisive break below $5000 and the upward channel structure is broken, the technical pattern for gold remains biased towards a strong consolidation within a high-level range.
Editor's Note:
The current decline in gold prices reflects more of a recovery in risk sentiment and short-term fund adjustments than a reversal of fundamental logic. Given the backdrop of continued central bank gold purchases, expectations of potential interest rate cuts, and persistent global uncertainty, gold's medium-term investment value remains prominent.
In the short term, gold prices may fluctuate around $5,000, awaiting clearer directional signals from key US data.
From a market perspective, the recovery in risk appetite is one of the core factors suppressing gold prices. After the previous volatility, US risk assets have strengthened again, with the S&P 500 index continuing its rebound and approaching historical highs. Investors' increased risk tolerance has prompted funds to flow back into equity assets, weakening gold's defensive attributes.
Meanwhile, geopolitical tensions have eased somewhat. Iran stated that the latest round of communication with the United States on the nuclear issue has made progress, alleviating market concerns about further deterioration of the situation, and thus some of the safe-haven premium previously accumulated in gold prices has been absorbed.However, from a medium-term perspective, the downside for gold remains limited. Data shows that central banks in major Asian countries increased their gold reserves for the 15th consecutive month in January, bringing their holdings to 74.19 million ounces. This continued allocation of gold by central banks reflects a long-term need to hedge against uncertainties in the global economic and financial environment, providing significant fundamental support for gold prices.
The market will now receive several key US macroeconomic data releases. Wednesday's employment data and Friday's consumer price index will provide further clues about the Federal Reserve's future policy direction. If the job market continues to cool or inflationary pressures show signs of easing, expectations of a weaker dollar may rise, thus providing new support for gold prices.
From a technical perspective, the pullback in gold after its rapid rise is more in line with the characteristics of a phased correction during an uptrend. The daily chart shows that gold prices are still trading within a medium-term upward channel, firmly above the major moving average system, and the trend structure remains intact.
From a technical perspective, the recent pullback has not broken the pattern of successively higher highs and lower lows, indicating that the bulls still control the medium-term trend. Momentum indicators have fallen from their highs, showing that short-term buying power has cooled somewhat, but it has not yet entered a clearly weak zone. The current adjustment is more like a digestion of the previous gains.
Regarding key price levels, the $5,000 mark is of great significance to the current trend. This level serves as both a psychological barrier and technical support; if gold prices can continue to stabilize above it, it will help maintain market confidence in the upward trend.
If the pullback extends further, the $4965 level corresponds to the previous breakout area and is close to short-term moving average support, which is expected to provide support for gold prices. Meanwhile, the area around $4920 is the lower edge of the upward channel, representing a crucial defensive level for the medium-term trend.
On the upside, gold prices will first face technical resistance around $5050, which is the short-term consolidation high. If prices break through and hold above this level, gold is expected to retest the intermediate high around $5085.
Once this level is broken, the technical structure will open up further upside potential for gold prices, with the area around $5150 becoming a target zone for medium-term bulls. Overall, unless there is a decisive break below $5000 and the upward channel structure is broken, the technical pattern for gold remains biased towards a strong consolidation within a high-level range.
Editor's Note:
The current decline in gold prices reflects more of a recovery in risk sentiment and short-term fund adjustments than a reversal of fundamental logic. Given the backdrop of continued central bank gold purchases, expectations of potential interest rate cuts, and persistent global uncertainty, gold's medium-term investment value remains prominent.
In the short term, gold prices may fluctuate around $5,000, awaiting clearer directional signals from key US data.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
