On Friday, December 15, the international gold market experienced a volatile session, with prices swinging sharply amid a tug-of-war between bulls and bears. The session ultimately closed with a bullish doji candlestick, leaving key signals for future price action. For investors, this nearly $100 fluctuation represents not only risk release but also a crucial reference for identifying new trading opportunities.
During Friday's session, gold prices initially surged in early trading, peaking at 4,353 before bearish momentum suddenly took over, driving prices down to a daily low of 4,257—a swing of nearly $100. This extreme volatility highlights the intensifying battle between bulls and bears. However, by the close, buyers regained strength, pushing prices back up to the key 4,300 level, forming a doji candlestick with long upper and lower shadows. This pattern reflects both strong selling pressure above and solid buying support below, serving as a critical clue for future trend analysis.
From a trend perspective, a multi-timeframe analysis is essential. On the daily chart, gold's bullish trend remains intact. The prior uptrend has established a strong bullish foundation, and despite Friday's sharp pullback, prices held above key support levels, closing near recent highs. A breakout above Friday's peak of 4,353 could signal further upside, reinforcing the existing uptrend.
However, the four-hour chart presents a more complex picture. After a sustained rally, a large bearish candlestick emerged, indicating a correction. Although prices rebounded slightly by the close, the short-term bullish candles were insufficient to fully reverse the bearish impact or confirm a trend reversal. This suggests the four-hour timeframe is in a corrective phase, with downside pressure likely to persist until the correction fully plays out—creating a short-term divergence from the daily chart's bullish trend.
The hourly and 30-minute charts provide additional context. On the hourly chart, gold briefly breached support before recovering, indicating that while bearish momentum was strong, follow-through selling was lacking, reducing the likelihood of further downside. The 30-minute chart similarly shows signs of stabilization after testing lower levels, confirming short-term support.
In summary, gold remains in a long-term uptrend but is undergoing a short-term correction, creating a dynamic balance between bulls and bears across timeframes. Given this balance, Asian session trading strategies should account for both trend continuation and short-term support levels.
For specific trades, consider entering long positions near Friday's low around 4,255, leveraging the strong support near the daily low of 4,257 while maintaining a safety buffer. A stop-loss at 4,240 would guard against unexpected breakdowns, requiring reassessment if triggered. Initial targets lie in the 4,280–4,290 range—a key prior consolidation zone and reasonable rebound target. A successful breakout could then test the 4,300 level for confirmation of further upside.
Given gold's sensitivity to macroeconomic data and geopolitical developments, short-term volatility may deviate from technical expectations. Investors should stay alert to news-driven shifts, adjust positions flexibly, and manage risk while pursuing trading opportunities.
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