2026-02-09 04:39:00
Gold prices have been on a bit of a rollercoaster lately, but have things calmed down enough for the yellow metal to settle in and stay on track with its longer-term uptrend?
Here’s what we’re looking at on the daily time frame:
Uncle Sam is set to drop its January jobs data, and if weak numbers force the Fed to cut rates more aggressively, gold could look more attractive as lower rates reduce the opportunity cost of holding assets that do not pay interest.
At the same time, uncertainty around Fed leadership is pushing central banks to add to gold reserves, while a softer dollar tied to dovish Fed expectations and fresh fiscal stimulus in Europe and China gives the metal an extra lift by boosting overseas demand and supporting USD-priced gold.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and gold, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
XAU/USD, which has been respecting a trend line support since September, recently tagged fresh record highs above $5,500 before plunging all the way to $4,400 and finally finding sustained support.
And they say cryptos are volatile.
The pair is now trading closer to $5,000, holding above the $4,800 area that lines up with the 61.8% Fibonacci retracement of the 2026 upswing.
Is the pair gearing up to extend its long-term uptrend?
Sustained trading above $5,000 could open the door for a push toward $5,200 and possibly a retest of record highs.
But if sellers regain control and XAU USD slips back below $5,000 on a consistent basis, the trend line support retest comes into view, if not a deeper pullback toward the $4,400 major inflection zone.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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