On December 12, gold broke through the 4260 level, a positive signal for bullish traders after an extended period of consolidation. This move aligns with broader geopolitical developments, including record-high U.S. military spending and strategic recalibrations. While America appears to be retracting globally, it has simultaneously approved new aid for Ukraine. Japan's heightened activity within NATO suggests potential diversionary tactics, with the alliance likely focusing pressure on Russia—a scenario that could escalate into wider conflict. Such macro uncertainties provide fundamental support for gold's upward trajectory.
Technically, gold's retreat from 4380 found firm footing above 3900, with sustained consolidation above the psychologically crucial 4000 level confirming this as a bullish retracement rather than trend reversal. The extended pause tested investor patience before Wednesday's decisive breakout.
Market dynamics typically alternate between gains and losses during range-bound phases. However, once directional breaks occur, they often trigger explosive moves. Gold's gradual ascent now shows signs of acceleration. Friday's session may offer brief pullback opportunities, but any dips should be viewed as entry points. The 4-hour chart shows expanding Bollinger Bands after overnight gains, indicating further upside potential. With 4260 resistance now converted to support, gold appears poised to challenge the 4300 threshold imminently.
The 4346 level—previously identified as a target—may come into play sooner than anticipated. Traders should consider scaling into long positions: initial light entries near 4000 can now be supplemented with heavier allocations post-4260 breakout, capitalizing on the confirmed uptrend.
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