On Thursday (January 9th) morning trading in the European market, spot gold remained relatively stable, with the current price around $2662 per ounce. Analyst Dhwani Mehta's latest article on Thursday analyzed the technical trend of gold prices.

Mehta wrote that gold prices have fallen from their monthly high of $2670 per ounce. Due to the relative strength index (RSI) turning bearish, the moving average is about to form a bearish crossover, and the gold price faces the risk of a deeper pullback.

Mehta stated that looking ahead, gold traders will closely monitor the speeches of Richmond Fed Chairman Barkin, Kansas Fed Chairman Schmid, and Fed Governor Bauman to gain new insights into future interest rate cuts by the Fed.

However, speculation surrounding the upcoming US President Trump's tariff plan will continue to affect the gold market. Due to former US President Jimmy Carter's national mourning day, some holidays in the US may exaggerate the trend of the gold market.

How to trade gold?

Mehta pointed out that the daily chart shows that although the 14 day Relative Strength Index (RSI) remained above the midline, it has turned downwards and fallen towards the midline. This indicates that gold buyers may face some depletion.

Mehta stated that the 21 day simple moving average (SMA) will cross the 100 day moving average from above, and if this happens at the close of the day, it will confirm a bearish crossover.

If the gold price correction continues, the initial support area will be at the 50 day moving average of $2644 per ounce. If it continues to fall below this level, the gold price will challenge the convergence point of the 21 day moving average and the 100 day moving average at $2632 per ounce.

If gold experiences a deeper decline, it will test the January 6th low of $2615 per ounce, followed by the integer level of $2600 per ounce.

On the other hand, Mehta added that if gold buyers re-enter the market, the price of gold must continue to break through the static resistance level of $2665 per ounce.

After that, the high points of $2693/ounce and $2700/ounce on December 13th last year will be the next targets for buyers to focus on.