**Gold Market Trend Analysis for Next Week:** On December 20, gold prices edged higher during the U.S. trading session, with spot gold rising 0.3% to $4,338 by the time of writing. Despite this, gold is still on track for a 0.6% weekly gain, just shy of its all-time high recorded earlier in the week. As the weekend approaches and with Christmas less than a week away, overall market sentiment remains subdued.
The softer-than-expected U.S. November CPI data initially boosted U.S. equities and weakened the dollar, which typically supports gold. However, this time, gold prices initially dipped before finding support and rebounding. In the short term, gold remains bullish, gradually approaching its October record high. However, the outlook for gold may become less favorable after entering 2026.
**Technical Analysis of Gold:** This week, gold has shown a bullish trend with intermittent corrections. Monday saw a strong rally, followed by a minor pullback on Tuesday, a steady climb on Wednesday, and a sharp drop after hitting a new high on Thursday. The overall trend aligns with expectations.
Thursday’s pullback from highs confirmed two key points: 1. The December high for gold is likely at $4,375, with little chance of further upside. 2. Gold is expected to trade within a high range for the rest of December, with potential for significant corrections.
The current trading range for gold is between $4,375 and $4,250 (major range) and $4,350 to $4,280 (minor range).
From a technical perspective, the daily chart shows gold forming a bearish candle near the upper Bollinger Band, but it quickly retreated and closed above the moving average support, indicating continued bullish strength. The H4 chart reveals a tightening Bollinger Band, suggesting a clear range-bound market between $4,350 and $4,280. Without a breakout, sustained directional moves are unlikely.
For Friday, gold is expected to trade within a tight range, with support at $4,310. Traders may consider buying on dips during the Asian/European sessions, targeting $4,350, and selling on rebounds if resistance holds.
**Next Week’s Gold Trading Strategy:** - Primary strategy: Buy on dips. - Secondary strategy: Sell on rallies. - Key resistance: $4,360–$4,380. - Key support: $4,310–$4,290.
**Crude Oil Market Trend Analysis:** Oil prices rebounded on Friday, with WTI crude closing at $56.54 and Brent at $60.47, despite hitting a May low of $54.98 earlier in the week. Geopolitical tensions, including the U.S. interception of a Venezuelan oil tanker, provided support. However, conflicting factors led to a complex weekly performance, with oil prices down 1% for the week—marking a second consecutive weekly decline.
Supply uncertainties persist, as U.S. sanctions on Venezuela have raised expectations of stricter measures that could disrupt oil exports, adding a geopolitical risk premium to prices.
**Technical Analysis of Crude Oil:** On the daily chart, oil prices have been in a secondary consolidation phase, with four consecutive bearish candles. The breakdown below the key $56 support level confirms a bearish medium-term trend.
On the hourly chart, oil prices rebounded briefly before entering a narrow range of $56.85–$55.55, indicating sideways movement with balanced momentum. A wider consolidation range is expected in the near term.
**Next Week’s Crude Oil Trading Strategy:** - Primary strategy: Buy on dips. - Secondary strategy: Sell on rallies. - Key resistance: $58.0–$59.0. - Key support: $55.5–$54.5.
*Disclaimer: The content is for informational purposes only and does not constitute investment advice. Investors should conduct their own risk assessments.*
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