Market Analysis: On December 19, gold, the ultimate safe-haven asset in the eyes of global investors, once again showcased a roller-coaster ride in the financial markets as 2025 draws to a close. On Thursday (December 18), gold prices surged to a near two-month high of $4,374 per ounce before quickly retreating, barely holding ground at $4,332.31 by the close. This volatility was not an isolated event but rather a reaction to the latest U.S. Consumer Price Index (CPI) data. The lower-than-expected inflation figures fueled expectations of a Federal Reserve rate cut, pushing Treasury yields lower and providing a temporary boost to gold. However, it also diminished gold's appeal as an inflation hedge, triggering profit-taking by bullish traders. Against the backdrop of silver hitting record highs and palladium reaching a three-year peak, this gold price movement underscores the uncertainties in the global economic recovery, offering investors a critical window to assess gold's future trajectory.
Gold Technical Analysis: This week, gold remains in a bullish trend but is prone to corrections. Over the past four trading sessions, Monday saw a strong rally, followed by a minor pullback on Tuesday, a steady climb on Wednesday, and a sharp spike followed by a steep decline on Thursday—largely in line with expectations. Thursday's pullback from highs suggests two key takeaways: First, the peak for December is likely capped at $4,375, with little chance of further highs. Second, gold is expected to consolidate at elevated levels for the rest of the month, with potential downside risks. The broader trading range now stands between $4,375 and $4,250, while the immediate range is $4,350 to $4,280.
From a technical perspective, the daily chart shows a bearish close near the upper Bollinger Band, hinting at a breakout that quickly reversed, leaving prices still supported by moving averages—confirming the underlying bullish strength. The 4-hour chart reveals that the late rally failed to widen the Bollinger Band, which remains constricted, reinforcing the consolidation pattern. Resistance is seen at $4,350, with support at $4,280. As long as this range holds, sustained directional moves are unlikely. Friday’s session is expected to remain subdued. With Thursday’s low at $4,310, intraday trading strategies suggest buying on dips toward $4,310 during Asian/European hours, targeting a rebound. Near $4,350, short-term selling opportunities may emerge if resistance holds.
Silver Technical Analysis: Silver opened lower yesterday, dipping to $65.52 before a sharp rally to $66.62, only to retreat aggressively and bottom near $64.60. The session closed at $65.47, forming a long-legged doji candle. For today, traders are advised to consider buying on dips toward $64, with a stop-loss at $63.70, targeting $64.60–65.00 and $65.30–65.50.
Disclaimer: The content is for informational purposes only and does not constitute investment advice. Investors should exercise caution and conduct their own research before making decisions.
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