EB SECURITIES: Gold prices are expected to remain at the high level and may trend upwards, temporarily stabilizing around the 50-day moving average level.

EB SECURITIES released a research report stating that, since August last year, the price of gold has experienced several minor pullbacks but has remained above the 50-day moving average. The firm believes that spot gold has found support around $4,402 per ounce, and in the past two weeks, the technical chart of spot gold has shown a strong upward momentum. The latest rebound reached a high of around $5,092 per ounce, and in the short term, it is important to monitor whether the price of gold will break above this level. If it successfully surpasses $5,092 per ounce, the firm will set a new annual target for the gold price in 2026. The report mentioned that the US non-farm payroll added over 130,000 jobs in January, which far exceeded market expectations, while the unemployment rate unexpectedly dropped to 4.3%, compared to a market expectation of 4.4%. Despite the strong job market data in the US, Federal Reserve Governor Lael Brainard emphasized that there are still many reasons to support a rate cut. However, Esther George, the President of the Federal Reserve Bank of Kansas City, expressed concerns about high inflation and stated that the federal funds rate should remain at a "moderately restrictive" level. Beth Hammack, the President of the Federal Reserve Bank of Cleveland, stated that the Federal Open Market Committee (FOMC) may need to keep rates unchanged for a considerable period of time. Traders subsequently lowered their expectations for a rate cut this year, causing the US dollar index to hover around 96.9. In addition, the price of spot gold surged to $5,595.46 per ounce at the end of January, reaching the firm's target price of $4,950 per ounce for the first half of the year. However, due to the rapid increase in the price of gold, spot gold experienced a significant pullback over three trading days, dropping to as low as $4,402.97 per ounce at one point. It then saw a technical rebound and was consolidating around $5,061 per ounce at the time of writing. From a technical perspective, the daily chart of spot gold has a strong support level at the 50-day moving average.