Spot gold traded slightly lower on Wednesday (Jan 18) during Asian hours, currently trading around $1,907 / ounce. On Monday, the dollar index fell to a new low of more than seven months, helping gold prices rise to a high of nearly nine months, up to 1929, nearing its peak of 1,930 on April 29 last year. The current market has been fully traded on the count interest rate slowdown and inflation down, and it is in a seesaw situation, currently fluctuating up and down near the 1900 integer mark.

However, the concern is that the number of new non-farm payrolls released in January 2023 was better than market expectations and the unemployment rate was lower than market expectations, reflecting that the labor market remains strong. At the same time, non-farm hourly wages fell more than expected, and the Consumer Price Index (CPI) year-on-year declined for 3 consecutive months, which also raised the market's expectation of a soft landing of the US economy. It may form a suppression of gold prices, and the key factor is whether the US economy can remain resilient. The market has not yet begun to trade the economy's soft landing, or even better, and if the economic data continue to show improvement, the "dollar smile theory" may allow the dollar to rebound. Now commodities are trading, China's economic recovery has led to a soft recovery in the global economy, with copper and crude oil both up more than 15% in the last half of the month. The global economy may have come out of a severe recession lasting for a long time in the early days, which is not good news for gold.

In the daily chart, the moving average is still showing a divergent pattern of bulls. However, after hitting a high of 1929 on Monday, the market has seen a 3-day pullback. The upside in the short term may need further stimulation, or continue to face pullback pressure. In the short term, Wednesday's high of 1886.65 and May 6 high of 1892.40 still have some resistance respectively; strong resistance is in Monday's high near the 1929 mark.

MACD is currently running to an overbought area, and it recorded 2 small bear candles on Monday and Tuesday. If it continues to close bear today, it needs to be wary of short-term top risk for gold. Initial support below is seen near the 10-day moving average of 1887 and strong support near the 20-day moving average of 1852.

Trade direction: Short

Entry price: 1920.000

Target price: 1860.000

Stop loss: 1950.000

Support: 1887.430, 1852.320

Resistance: 1929.000, 1950.000