Spot Gold Morning Review on February 2, 2026

Rapid decline followed by oscillation and recovery, seize the rhythm with low buy-in and rebound

A sharp drop is not the end; opportunities are hidden in oscillation and recovery. Pinpoint support and resistance levels are more reliable than chasing highs and selling lows.

News: Last Friday, London Gold plummeted over 10% in a single day. Today during the Asian session, it dropped to a low of $4,584. The core reasons are the delayed Federal Reserve rate cut expectations, easing tensions in the Middle East leading to a retreat in geopolitical premiums, combined with institutional closing positions and algorithmic trading amplifying volatility. Central banks continue to buy gold, and physical purchases during the Spring Festival provide support, limiting deep declines.

Technical analysis: Broke below the key support of $4,800, with a bearish moving average alignment and RSI oversold. Support at $4,580, resistance at $4,800. The likelihood is for oscillation followed by a weak rebound.

Trading suggestions: Focus on oscillation and rebound corrections; avoid shorting before stabilization. Light long positions at $4,620-$4,640 with stop-loss at $4,600, targeting $4,750-$4,800; short at resistance around $4,800 with stop-loss at $4,830, targeting zones at $4,720-$4,640-$4,580.

The above content is for reference only and does not constitute investment advice. Please follow Cheng Jingsheng's layout for specific strategies!!$XAUT #XAU