The gold market has been extremely hot recently. On January 12th, London gold surged nearly 2%, with a single-day increase of over $120, briefly breaking through $4,630 per ounce, hitting a new all-time high. By the morning of the 13th in Asian markets, spot gold was still hovering around $4,590 at high levels.

This rally is driven by the resonance of two major events. One is Trump launching a criminal investigation against Federal Reserve Chairman Powell, causing market expectations of Fed policy to become unstable; the other is the US announcing a 25% tariff on countries with commercial dealings with Iran, significantly increasing geopolitical risks. The combination of these factors has led safe-haven funds to flood into the gold market, pushing prices to new heights.

Overall, the bullish trend in gold is unlikely to reverse in the short term. However, don’t get too optimistic—this week’s economic data releases and court rulings require close attention, as short-term volatility could intensify.

**What does the technical analysis say?**

On the daily chart, it’s very clear—gold continues to rise with consecutive bullish candles, constantly hitting new highs along the upper band of the Bollinger Bands. The support levels for MA7 and MA10 are now at 4515 and 4460 respectively, indicating a strong bullish momentum.

Switching to the four-hour chart, the moving averages are diverging upward, and the price has been trading near the upper band of the Bollinger Bands. However, after reaching 4630, the RSI indicator has already hit the overbought zone at 80, and there are signs of a pullback at the end of the session. Slight correction signs should not be ignored.

On the hourly chart, the moving averages are tangled together, and the Bollinger Bands are tightening, suggesting a likely pattern of a dip followed by a rise in the intraday trend.

**How to operate?**

The core strategy remains to buy on dips—avoid blindly chasing highs or selling at lows. As long as key support levels are not effectively broken, the upward trend will not reverse. That’s a hard rule.

Key support levels are as follows—first support at 4573, second support at 4550, third support at 4525. Holding these levels is crucial.

Resistance levels—first resistance at 4618, second at 4635, third at 4662. These are the levels where upward movement may face pressure.

**Short-term low-buy (trend-following first):**
- Entry zone: 4550-4560
- Stop-loss: 4540 (exit if broken, don’t hold through a break)
- Target levels: 4630-4650

**Short-term high-sell (optional):**
- Entry zone: 4630-4640
- Stop-loss: 4650 (exit if broken, don’t hold through a break)
- Target levels: 4550-4500

Ultimately, focus on these key levels, set your stops, and avoid entering trades without preparation.