Spot gold consolidating at high levels, caution needed for potential pullback

January 28, 2026, Spot Gold Midday Review

This morning, the strength of spot gold's movement was quite overwhelming, catching Lao Cheng a bit off guard. Lao Cheng summarized the main news factors behind the strong rally: Trump's "tacit approval of a weaker dollar + manageable exchange rate" comments directly triggered safe-haven demand and dollar depreciation expectations, combined with the dovish stance in the Federal Reserve's decision, pushing gold prices sharply higher to new highs in the short term.

Although there has been profit-taking at high levels, the strong pattern remains unchanged. Pullbacks are still considered low-entry opportunities. As long as key support levels hold, the upward trend will continue.

From a technical perspective, the daily chart shows eight consecutive bullish days, RSI is overbought but not turning down, and the 4-hour chart indicates high-level consolidation with volume still active. Short-term correction is needed, and caution should be exercised against profit-taking-driven pullbacks.

Currently, the resistance zone above is 5260-5280, while 5200-5210 is the support zone for a potential top-bottom reversal. 5180-5190 is the vital support line for the bulls. The current correction is a technical adjustment within a strong trend; as long as support is not broken, the overall bullish outlook remains intact.

In terms of trading strategy, focus on buying on dips. Enter multiple long positions in the 5200-5210 range, with a stop-loss below 5180. The initial target is the 5250-5260 zone; if broken, look toward 5280-5300. If the price unexpectedly breaks below 5180 support, exit immediately and wait for stabilization signals before re-entering. If there is a quick rally after the decision, avoid chasing the high; wait for a pullback to support levels before re-entering.

This is only personal advice for reference. Please follow Cheng Jingsheng's layout for specific strategies! $XAUT