Gold market analysis

"Gold Price at $4,660 is a Key Support Level" 22/1/2026 10:33 Completed 

Trump said at the World Economic Forum in Davos on Wednesday that the United States has reached a framework for a future agreement with NATO on strategic deployment in Greenland and the Arctic region, and said that the implementation of the plan will bring huge benefits to the United States and NATO member states. In addition, he said that the United States would suspend the planned imposition of tariffs on eight European countries on February 1. At the same time, he said that the United States would not use force to occupy Greenland, and said that the United States has reached a framework for a future agreement on Greenland, and the United States will participate in the island's mining rights. It is reported that the agreement may involve Denmark ceding a small piece of land in Greenland to the United States to establish a military base. 

Trump's remarks sent US stocks soaring, while the prices of gold and silver plunged sharply due to the reduced so-called safe-haven demand. Yesterday, the spot gold price in New York City's late trading session dropped to $4,756.29, a decline of more than $132 from the $4,888.13 it reached in the early European trading session. After a rebound, the price was capped at $4,840 and then fell again, forming a narrowing triangle on the 5-minute chart. In the early Asian trading session today, the gold price still failed to rise above the $4,800 level. If we look at the timing, the gold price's rise this week was triggered by Trump's statement that he might use force to "own" Greenland, causing it to climb from below $4,700. Currently, this factor can be said to have vanished, and the gold price should fall back below $4,700, or even below $4,643. 

From the hourly chart, it can be seen that the spot gold price is currently trapped between the 20SMA (4835) and the 50SMA (4782), waiting for a breakthrough. From the Gann Square, the range of $4810 to $4860 has become a resistance zone. Currently, the gold price is fluctuating within the range of $4810 to $4760. Once it breaks below the 50SMA, the gold price will return to fluctuate within the range of $4710 to $4760, and the next important support level is $4660, which is also the bottom support of the horizontal range on Tuesday. I estimate that after the recent rapid rise driven by unexpected events, the possibility of a short-term pullback is very high, and $4660 can be regarded as an important support level for this pullback. 

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