Gold market analysis

Gold price still faces short-term resistance at 5110. 26/1/2026 10:55 Completed
Gold and silver prices continue to soar. After the spot gold price broke through the $5,000 mark this morning, it has continued to rise. After the strong resistance at $4,960 at the 90-degree angle of the Gann Square was broken, the gold price is inclined to further challenge the $5,110 at the 135-degree angle, which is the strong resistance level I pointed out. The performance of silver prices is even stronger. The $100 mark was easily broken, and it has already risen to $108 this morning, approaching $110. Recently, the market has been frantically snapping up physical silver as an investment tool without regard for price. I believe a bubble has formed. How it began will be how it ends. The prices of gold and silver will eventually plummet for several consecutive days to end this game. 

The quarterly charts of gold and silver futures prices show that the 9RSI has risen above 95. A sharp fall is expected as the rise and fall of gold and silver have completely deviated from the fundamentals and merely reflect the so-called geopolitical risks that could reverse at any time. I don't believe these geopolitical risks will lead to long-term and persistent conflicts, especially if they are all triggered by a Trump. Investors who have engaged in the "Trump Trade" should not follow too closely. Firstly, he himself will change his course according to the wind. Secondly, if the Republicans lose control of the House of Representatives in the midterm elections in November this year, the market situation is very likely to reverse. 

For now, the market can still hype up the dovish stance of the Fed's post-Powell monetary policy, thus selling off the US dollar. Meanwhile, the AI concept continues to drive up the US stock market, but the valuation is likely already too high and there is also a bubble risk. The current market situation is like a patient whose behavior has become abnormal, and is now looking for the cause of the illness. Eventually, he will recover. 

At present, the spot gold price is still rising towards the Fibonacci 100% extension level of $5,106.47 on the hourly chart. If $5,110 is also broken through, it is expected to further challenge the Gann 180-degree angle at $5,310. The $4,990 to $5,010 range is an important short-term support zone. For ultra-short-term trading, the 5SMA on the 5-minute chart (currently around $5,079) is an important support level. A close below this level can be regarded as a short-term reversal to the downside. At this stage, investors should not incorporate too many personal opinions. To make money, just follow the signals sent by the market and trade with the trend! 

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