January 3rd spot gold's market indeed feels a bit "刺激"—opening sharply to a high of 4402, then turning around with a wave of decline, finally smashing down to the 4310 level, a 90-point drop for the day. By the close, gold prices steadied around 4332, fluctuating within a wide range all day.

From the macro perspective, both US stocks and the forex market are under significant pressure. The sovereign credit risk brought by US debt issues remains an unavoidable topic, but the "good start" of US stocks is also boosting the dollar. Under the entanglement of bullish and bearish forces, the volatility in the precious metals market naturally intensifies. Looking back at December last year, after hitting a historic high, gold started playing the game of "rising high then plunging," with more frequent sharp sell-offs from high levels. The battle between bulls and bears has long reached a fever pitch.

On a larger cycle, attention can be paid to the 4450 region above, while the downside target for a correction points to the 4200 level. During this non-farm payroll week, gold prices are likely to remain in a consolidation pattern, with the key being the strength of the rebound. The first resistance is at 4363; if broken, it can attempt to test 4405. If 4363 is held back, the first support to test is at 4300. If it breaks below 4300, it could potentially drop to 4250.

From a trading perspective, after this wave of sharp decline, gold has entered a correction cycle. It is recommended to short near resistance levels, focusing on the key levels of 4363 and 4405. In the short term, in this oscillating market, long positions can try their luck at support levels, with the 4300 and 4250 zones worth watching. Our yesterday's precise short position around 4400 has successfully captured a swing profit, which is the result of strictly following the plan.