The price of gold rebounded after the fluctuation of the previous day, breaking through 2770 dollars, which was mainly driven by the decline in the yield of US treasury bond bonds and Trump's tariff plan. The hawkish pause of the Federal Reserve may limit the upward momentum of gold. Technically speaking, if it breaks through $2775, it is expected to further rise. If the price falls below the support level, it may rebound to the range of $2707-2684. The market is concerned about the impact of US GDP data and ECB decisions on the trend of gold prices.

Fundamental analysis

On Thursday (January 30th) during the European trading session, the price of gold resumed its upward trend after experiencing severe fluctuations the previous day, breaking through the $2770 mark. This rebound was mainly driven by the sharp decline in the yield of US treasury bond bonds; In addition, Trump's proposed tariff plan has further boosted the demand for gold as a safe haven asset.

Trump's demand for interest rate cuts and signs of slowing inflation in the United States have provided support for the Federal Reserve to further relax policies, which has also driven up gold prices. Nevertheless, the hawkish pause of the Federal Reserve on Thursday still supports the US dollar, and coupled with positive risk sentiment in the market, it may dampen the upward momentum of gold.

In this context, the market is currently focused on the upcoming release of preliminary US GDP data for the fourth quarter and the policy decisions of the European Central Bank, which may provide further guidance for the trend of gold prices.

Technical analyst interpretation:

From a technical perspective, the price of gold has broken through the resistance range of $2720-2725, and the oscillation indicators on the daily chart show a positive trend, further verifying the bullish outlook of gold prices in the short term. However, the market still needs to wait for the price to break through the immediate resistance level of $2775 in order to confirm the possibility of further rising to the $2786 area. Breaking through this level again may further push the gold price closer to its historical high of $2790.

If the gold price breaks through the historical high of $2790 and continues to rise above the $2800 mark, it will provide a new entry signal for bulls, further driving up the gold price and continuing the upward trend of the past month.

On the contrary, if the gold price declines and falls below the previous trading day's low point, which is in the $2745-2744 range, it may attract some bargain hunting buyers. If the price of gold falls below the support level of $2725, the price of gold may accelerate its downward trend, targeting the range of $2707-2705, and ultimately testing the support range of $2684.

summary

From a fundamental point of view, the rise of gold price is supported by multiple factors, especially the decline in the yield of US treasury bond bonds and Trump's policy. These factors together promote the demand for gold as a safe haven asset. However, the hawkish stance of the Federal Reserve has imposed certain constraints on the price of gold, and changes in market sentiment will continue to affect the trend of gold.

From a technical perspective, the price of gold has broken through important technical resistance levels, demonstrating the potential for an upward trend. If it can break through the resistance of $2775, gold may continue to climb and challenge higher price levels. On the contrary, if the price falls below the key support level, there may be a pullback or even an accelerated decline.

As the US GDP data and European Central Bank decisions approach, market sentiment and fluctuations in gold prices will become more intense.