During the Asian trading session on Friday (December 19), spot gold traded around $4,311.49 per ounce. As of the latest update, gold prices stood at $4,320.16 per ounce, down 0.26%, after reaching a high of $4,336.33 and a low of $4,308.59. Currently, the short-term trend for gold appears to be consolidating.
**Key Highlights:** U.S. President Donald Trump revealed that he is interviewing "three to four" candidates for the Federal Reserve Chair position and expects to announce his nominee "soon" to replace current Chair Jerome Powell. Trump noted that all candidates are strong contenders but remained uncertain whether the final decision would be made before year-end, though he confirmed the selection would be finalized in the coming weeks.
Trump has repeatedly emphasized his preference for a Fed leader who would aggressively cut interest rates to reduce mortgage costs. Earlier, he hinted at having a preferred candidate in mind, stating he had a "pretty good idea" of whom to nominate. However, in a recent interview, Trump praised multiple potential candidates. When asked about Fed Governor Christopher Waller, he mentioned their Wednesday meeting and commended Waller as "excellent," citing his extensive experience at the Fed. Trump also lauded Vice Chair for Supervision Michelle Bowman but did not clarify if she remains under consideration.
Last week, reports suggested that National Economic Council Director Kevin Hassett and former Fed Governor Kevin Warsh were among the top contenders. "I think both Kevins are great," Trump remarked, adding, "There are a couple of others who are very good too." He also reiterated his call for significant rate cuts to 1% or lower. The Fed has already lowered benchmark rates three times to 3.5%-3.75%, though three officials dissented, reflecting internal divisions within the Federal Open Market Committee.
**Latest Gold Market Analysis:** Spot gold opened weaker on Monday, pressured by recent corrections and a rebound in the U.S. dollar index. However, prices remain within an upward channel, and with no sustained bearish catalysts, any pullback to key support levels could present buying opportunities.
On a monthly chart, gold's continued rebound has neutralized the bearish signal from October's long upper shadow. Despite facing resistance at the trendline in December, upward momentum suggests a breakout remains likely, maintaining the overall bullish outlook.
Weekly charts show gold encountering resistance near the trendline connecting previous all-time highs, with momentum slowing. Technical indicators appear slightly weak, raising the possibility of a retreat toward the 5-10 week moving averages and the $4,200 support level—or even the weekly mid-Bollinger Band. However, given the bullish trend, any dip to these levels could offer fresh long-entry opportunities. A confirmed breakout above the trendline would further reinforce bullish sentiment.
In summary, while gold's recent rebound has yet to decisively breach trendline resistance, the broader uptrend remains intact. Short-term traders may adopt a range-bound strategy, while long-term or swing traders could consider entering on dips toward the mid-Bollinger Band and 60-day moving average support or awaiting a confirmed breakout above resistance for follow-through buying.
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