On Tuesday, January 28, around 2741, spot gold trading witnessed a significant drop on Monday, with prices falling more than 1% after approaching historical highs the previous dayThis decline was largely attributed to the impact of DeepSeek, a low-cost artificial intelligence model from China, which sent shockwaves throughout the broader marketInvestors began liquidating their gold positions to capitalize on profits amidst this unsettling downturnMeanwhile, U.S. crude oil was trading around $73.18 per barrel, experiencing a dip of roughly 2%—the lowest point in two weeksThe surge in interest surrounding DeepSeek raised concerns regarding the energy demands of data centers, contributing further to the market's unease.

The technology sector, which has been a significant player in market movements, also took a hitThe rising attention on DeepSeek has jolted investor confidence regarding the profitability of artificial intelligence and the consequent need for high-tech chipsOn Monday, the S&P 500 index fell by 1.46%, while the NASDAQ composite dropped by 3.07%. The Philadelphia semiconductor index plummeted by over 9%, with notable stocks like NVIDIA witnessing an almost 17% decline, resulting in a loss of about $589 billion in market value—marking the largest single-day loss in a company’s valuation on recordOther tech giants, including Google, Tesla, Microsoft, and Intel, also faced declines exceeding 2%, reflecting the pervasive adverse sentiment

As traders and economists closely monitor the developments in the financial markets, one of the focal points is the Federal Reserve's monetary policy decision anticipated later in the weekFollowing the conclusion of the Federal Open Market Committee meeting on Wednesday, most market participants expect the Fed to maintain its benchmark overnight interest rate in the range of 4.25%-4.50%. Analysts refer to this potential decision as a "dovish pause," anticipating it might stabilize underlying market trends

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Additionally, traders are waiting for the release of the U.S. durable goods orders data for December, which investors deem critical for gauging the economy’s resilience.

Turning our attention to the gold market, the analysis for January 28 indicated that trading began around 2770. In the Asian trading session, gold prices briefly climbed to a high of 2772 before beginning to retreatThis oscillating pattern continued until European trading hours, during which there was a slight upward reboundHowever, come the U.S. market opening, prices resumed their downward trajectory, eventually plunging to a daily low of 2730, where strong support was notedThe trading session concluded with a bearish candlestick, suggesting significant selling pressure.

From a technical perspective, the daily chart shows that the Bollinger Bands are still in an upward opening pattern, while the K-line has faced resistance after a brief upward movementThe moving averages MA5 and MA10 are diverging positivelyHowever, the MACD histogram is gradually decreasing, and a bearish crossover in the KDJ indicator suggests that further downward movement may be imminentIn light of these dynamics, it is prudent to consider a bearish strategy with possible retracement for short positions.

For traders, operational strategies concerning gold are recommended as follows: consider initiating short positions around 2745/2747, with a stop loss of $6.5, targeting downward levels at 2732, 2715, and ultimately, 2700. During any testing of 2760/2762 levels, traders should contemplate shorting, again with a stop loss set at $6.5, while aiming for targets at 2750 and 2735. Alternatively, potential long positions could be warranted near the 2700/2702 range, maintaining a stop loss of $6.5, with upward targets of 2714 and 2722.

Shifting focus to the silver market, the analysis on January 28 noted an opening price close to 30.52. The local trading session saw a downward trend, which continued into European trading hours before a pronounced drop led to a new daily low around 29.69. The daily candlestick formed with a long lower shadow signifying the volatility in prices

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In the context of technical indicators, the Bollinger Bands are converging, while the K-line is fluctuating near the middle bandThe MA5 and MA10 are beginning to curve downward from elevated levels, and a bearish trend is predominant, suggesting continuing weakness in the silver market.

For silver traders, proposed strategies should include establishing short positions in the 30.28/30.37 region, with a stop loss at 30.58, targeting lower levels at 29.75, 29.24, and 28.82. Should the price near 30.84/31, we recommend opening short positions with a stop loss of 31.24, looking to achieve targets around 30.25 and 29.63. Furthermore, there could be opportunities to establish long positions closer to the 28/28.24 range, with a stop loss at 27.82 and aiming high towards 28.63 and 29.25.

In terms of crude oil market dynamics on January 28, trading commenced near 74.5. After an initial decline during Asian market hours, a rebound was noted within the European session, reaching a high of 75.2 before retracting toward the close of the day, where it recorded a new low around 72.4—solidifying strong supportSimilar to gold and silver, the daily candlestick showed significant bearishness, suggesting the sellers are maintaining control.

From a technical standpoint, oil's Bollinger Bands are in a closing state, with K-lines reflecting consistent declinesThe moving averages, MA5 and MA10, are positioned at high levels and seem to be turning downwardThe MACD shows diminishing positive momentum, indicating pressures from above, while the KDJ indicator is also indicative of bearish signalsThis suggests that traders should prepare for continuing downward movements in the crude oil prices.

Suggested operational tactics for crude oil include short positions around the testing of 73.8/74, with a stop loss at $75, targeting lower levels at 72.3, 71.4, and ultimately 70.2. Anytime the price reaches approximately 75.3/75.5, a short position should also be considered, with a stop loss at 76.5, while targeting downwards at 74 and 72.6. Additionally, opportunities for long positions may arise around 70/70.2, maintaining a stop loss at 69 and a target up to 71.3 and 72.8.

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