Gold market analysis

"Gold's main resistance is at $4,960" 21/1/2026 10:36 Finalized 

Trump insisted on "owning" Greenland and even threatened to impose tariffs on a number of European countries that opposed him, causing a sharp rise in risk aversion in the financial market. The purpose of gold prices consolidating at a high level on Monday this week has become apparent. Yesterday, the spot gold price broke through $4,700 in the midday Asian session before the opening of the European market, and then rose repeatedly, reaching a high of $4,373.75 near the midday European session. After that, a round of profit-taking selling emerged, and the price dropped to $4,715.45 in the early New York session, but then rose again and further reached a high of $4,750.49. 

From the 5-minute chart, after a sharp pullback, gold failed to break through $4,750 again and formed a small double top before retreating. However, it bottomed out at $4,722.57 and then formed a small double bottom to rebound. In the New York midday session, it twice rose to the $4,766 level and then formed a double top to fall back. It bottomed out at $4,747.45, slightly testing the previous double top before gradually recovering. Today, in the early Asian session, it resumed its upward trend, reaching a high of $4,844.39 before pulling back again. Technically, the recent pullbacks in gold prices have found strong support at the 20SMA (currently around $4,815) and 50SMA ($4,787) on the 5-minute chart. From the Gann Square perspective, $4,810 is located at a 45-degree angle, which is a minor resistance level. The major resistance level is at a 90-degree angle at $4,960. Given the current strength of gold prices, it is expected to challenge this level this week. 

However, I would like to remind investors that all sharp rises or falls in the prices of financial assets caused by non-economic factors will not last. The current focus is on Greenland. In fact, Trump's proposed leasing plan is one of the solutions. Besides, it is also feasible for Denmark to allow Greenland to become independent and a neutral country. Even in the worst-case scenario, if the United States and many European countries station troops in Greenland, it is not necessarily a bad thing. At least, this would ensure that Greenland is protected by all parties. It is also possible that this is a grand scheme jointly played by the United States and European countries! 

The above content is for reference only and does not constitute investment advice.