February 5, 2026 Spot Gold Midday Analysis

Spot gold experienced a sharp decline in the morning, dropping over 3%, with a low of $4,783.15, triggered by multiple bearish factors leading to market sell-offs.

The news was influenced by the Fed's hawkish expectations repeatedly affecting the market, profit-taking after previous overbought conditions, combined with concerns over market liquidity, which accelerated the rapid decline in gold prices.

On the technical side, key support levels were consecutively broken, and after a short-term oversold correction, the market entered a consolidation phase with no clear reversal signals.

In terms of trading strategy, focus on buying the dips and selling the rallies, participating with light positions within the intraday range. If the price rebounds to the 4900-4930 zone and faces resistance, consider lightly shorting with a target near 4850-4800-4780, strictly setting stop-loss orders to avoid sudden volatility during the consolidation period.

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