On Tuesday (December 30) in early Asian trading, spot gold hovered near its lowest level in nearly a week, currently trading around $4340. Spot gold fell sharply on Monday (December 29) from the previous trading day's record high of $4549.69 per ounce, closing down 4.4% at $4331.78 per ounce. The main reason for the pullback was profit-taking by investors after the recent surge. Thin trading and limited liquidity during the holiday season also exacerbated market volatility. Furthermore, TD Securities commodity strategist Daniel Galli pointed out that the approaching deadline for President Trump's proposal regarding the investigation into key minerals further impacted market sentiment.

While this sharp pullback in precious metals shocked the market, it is essentially a normal phenomenon of profit-taking at high levels. Thin trading during the holiday amplified the volatility, but the fundamentals have not fundamentally changed. Global economic uncertainty, geopolitical risks (such as the Russia-Ukraine conflict, Middle East tensions, and the situation in Venezuela), central bank gold-buying trends, and potential further interest rate cuts will continue to support gold demand. Year-to-date, gold prices have risen by over 65%, marking the strongest annual gain since 1979.

From the daily chart for spot gold, yesterday's sharp decline resulted in a large bearish candlestick, breaking through three moving averages and triggering a death cross on the MACD indicator, suggesting the previous rebound has ended and a further decline is likely. The resistance level of the 5-period moving average (MA5) should be monitored.

From the 4-hour chart for spot gold, yesterday's sharp decline has erased all of last week's upward movement. While there has been some rebound, the MACD indicator is currently in a death cross phase, suggesting further declines are possible. The resistance level above 4370 should be monitored. Resistance: 4370-4380-4390; Support: 4360-4350-4340.

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.