On December 23, gold prices strengthened again during Asian trading hours amid ongoing global geopolitical tensions and rising economic uncertainty. Over the past month, gold has gained approximately 10%, with a nearly 70% increase year-to-date in 2025, highlighting its growing safe-haven appeal. Meanwhile, reinforced expectations of medium-to-long-term Fed rate cuts have further reduced the opportunity cost of holding gold. Although technical indicators suggest short-term overheating, the overall trend remains bullish.
From a daily chart perspective, gold maintains a strong bullish structure, firmly trading above the 100-day exponential moving average, confirming the upward intermediate trend. The widening Bollinger Bands indicate the continuation of the trending market.
In terms of momentum indicators, the 14-day RSI has risen above 70, entering overbought territory, signaling potential short-term consolidation or high-range volatility. However, no clear reversal signals have emerged. If bullish momentum persists, gold prices may break through further upside targets.
Overall, gold is currently in a "high-range phase within a strong trend." Geopolitical uncertainty and global monetary policy easing expectations jointly support gold's medium-to-long-term upward trajectory.
While technical indicators suggest short-term correction risks, any pullback is more likely to be viewed as a consolidation rather than a trend reversal unless macroeconomic or sentiment fundamentals shift. In the current environment, gold remains one of the few core assets offering both safe-haven and trending characteristics.
Comments