In early Asian trading on Monday (October 20), spot gold traded around $4,250/oz. Gold prices fell nearly 2% after hitting a record high of $4,379.38/oz last Friday. The strengthening dollar and President Trump's tariff rhetoric have dampened precious metals trading activity. As a traditional hedge against uncertainty, gold has surged over 64% this year. Bets on US interest rate cuts have also supported this non-interest-bearing asset.

The current gold market dynamics are characterized by a fierce battle between bulls and bears: Middle East conflict and geopolitical uncertainty provide strong support, while easing US-China trade tensions and a strong dollar create downward pressure. Expectations of a Fed rate cut are setting the tone for an upward trend. Looking ahead, with the next round of US-China talks and the Federal Reserve meeting approaching, gold prices may face the risk of a further pullback in the short term. Investors should closely monitor this week's data and geopolitical developments.

Looking at the weekly spot gold chart, gold prices experienced a further surge last week, with the magnitude even greater than before, resulting in a strong bullish candlestick pattern, indicating a dominant bullish trend. While the moving averages remain in a perfect bullish alignment, there is a significant divergence from the current price, prompting caution against profit-taking at elevated levels. The MACD indicator is also in a golden cross formation, suggesting continued upward momentum.

Looking at the daily spot gold chart, gold prices experienced a sharp decline last week, but quickly recovered and began to rise again, demonstrating strong support below. After retracing to the MA5 moving average, further upward movement is possible. The moving averages are currently accelerating towards price, while the MACD indicator is expanding its double-line gap. Until a clear reversal signal emerges, we recommend maintaining a buy-on-dip strategy. Resistance levels: 4255-4265-4280; Support levels: 4240-4230-4220.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.