On Wednesday (February 25), gold rose slightly in Asian trading, but remained below the $5200 level. The current rise in gold is mainly driven by geopolitical risk premiums. Escalating military deployments in the Middle East and renewed concerns about escalating conflict ahead of US-Iran nuclear negotiations have boosted demand for safe-haven assets.

Despite a price pullback, bargain hunting provided support, with traders closely watching the upcoming State of the Union address by US President Donald Trump, scheduled for later (10:00 AM Beijing time on Wednesday). The address is expected to address key issues such as fiscal policy, trade tariffs, and international relations, potentially providing further directional guidance for the market.

From a daily chart perspective, gold prices experienced a significant pullback during the US session yesterday, briefly approaching Monday's opening level, significantly altering the short-term trend. This was primarily due to the strong rebound of the US dollar index. Currently, the moving average group shows a downward trend, but the impact is relatively limited at present. The strength of support and resistance levels needs continued monitoring, with the 5100-5250 range remaining a key focus this week.

Looking at the 4-hour chart for spot gold, since breaking above the 5500 mark, the price has been primarily trending towards high-level consolidation. This indicates the market has gradually entered a battle between bulls and bears, requiring further clues about interest rate cuts to trigger a breakout. Currently, the short-term moving average group is turning downwards, but the downward momentum is not particularly strong. The MACD indicator has also formed a death cross, but it is relatively close to the zero line. Therefore, the recommended trading strategy is to buy low and sell high. Resistance: 5190-5200-5210; Support: 5175-5160-5150.

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.