ETO Markets Global Pulse: Gold Whipsaws, Sinks 4% as Geopolitics Intensify

Market Review

According to ETO Markets monitoring, on January 29 (Thursday), spot gold pulled back sharply after setting a fresh record high, before recovering part of the losses on dip-buying. Prices remained volatile but stayed elevated overall.

During early Asian trading on January 30 (Friday), selling pressure accelerated. Spot gold plunged around 4% and fell to near USD 5,170 per ounce, as overheated positioning triggered a rapid correction.

Global Headlines

1) U.S. Expands Middle East Naval Deployment

A U.S. Navy Arleigh Burke-class destroyer transited the Suez Canal en route to the Persian Gulf, lifting the total number of U.S. warships deployed in the region to at least ten, including the aircraft carrier USS Abraham Lincoln. Markets are increasingly focused on the risk of escalation involving Iran.

2) Trump Signals Fed Chair Pick Next Week

U.S. President Trump said he will announce the next Federal Reserve Chair nominee next week and renewed criticism of Chair Powell for resisting rate cuts. U.S. media reports suggest former Fed Governor Kevin Warsh has emerged as a leading candidate, reviving uncertainty over future policy direction.

3) U.S. Funding Deal Eases Shutdown Risk

Trump said an agreement has been reached with Senate Democrats on government funding, temporarily easing the risk of a broad federal shutdown. While some agencies may face brief disruptions over the weekend, overall economic impact is expected to be limited.

4) Trump Threatens 50% Tariff on Canadian Aircraft

Trump warned that the U.S. may suspend certification of Canadian-made aircraft and impose tariffs of up to 50% if disputes remain unresolved, adding to trade-related uncertainty.

5) Pentagon Ready for Any Iran Decision

U.S. Defense Secretary Hegseth said the Pentagon is prepared to execute any decision made by the President regarding Iran, as Washington seeks to prevent Tehran from advancing nuclear capabilities. Military options remain under review.

ETO Markets Analyst View (Spot Gold)

From a technical perspective, gold remains above key support despite sharp intraday swings. The swift rebound following the sell-off suggests underlying demand remains intact, with geopolitics and policy uncertainty still embedded in pricing.

The key near-term level to monitor sits around 5,285. As long as prices hold below this zone, gold is likely to trade in a volatile consolidation range rather than resume a straight-line rally.

RSI has dipped below the neutral 50 level but is starting to turn higher, indicating short-term momentum may be stabilizing. With headline risk elevated, price swings are likely to remain amplified, calling for disciplined risk management.

Disclaimer

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