January 27 Morning Spot Gold Analysis: Stabilizing After Sharp Drop, Buying Opportunity Emerges

The market always moves through fluctuations. Yesterday's plunge is not the end but a calibration of the trend; only those who withstand the volatility can grasp the true market opportunity.

News Analysis: Gold prices plummeted overnight due to a confluence of factors including liquidity squeezes, a strengthening US dollar, cooling expectations of rate cuts, technical overbought conditions and profit-taking, and a retreat in geopolitical safe-haven demand. However, global central banks continue their gold-buying pace, and geopolitical risks (such as conflicts in the Middle East and Greenland disputes) still exist, providing support for gold prices. Meanwhile, the market is focused on the Federal Reserve meeting on January 30, with rate cut expectations remaining a key variable.

Technical Analysis: Gold is oscillating near the $5000 level, with short-term support and resistance in the $4980-$5030 range. RSI and KDJ indicators have eased from overbought conditions after the sharp decline, suggesting a potential stabilization and rebound, but caution is advised regarding the strength of the rebound.

Strategy: Maintain a primarily long bias, focusing on the $4980-$5030 range. Consider staggered low-buy positions within the $4980-$5000 zone, with a stop-loss at $4950, and targets of $5030-$5060. If the price breaks above $5050, add to positions accordingly, aiming for $5100.

The above is only personal advice for reference; please follow Cheng Jingsheng's layout for specific trading strategies.