Gold Prices Swing Amid Market Uncertainty as Traders Await US CPI Data

Deep News12-18 13:40

On Thursday, December 18, spot gold opened with slight fluctuations in early Asian trading before edging lower. Market focus remains on former U.S. President Trump’s national address and the delayed release of November’s U.S. CPI data.

On Wednesday (December 17), spot gold extended gains, peaking at $4,348 per ounce and settling near $4,338, up approximately 0.84%. The broader precious metals market rallied, with silver surging past $66 to a record high of $66.87 per ounce, while platinum hit a 17-year peak.

**Key Drivers:** - **Geopolitics**: Tensions between the U.S. and Venezuela escalated after Trump ordered sanctions on Venezuelan oil tankers, fueling speculation of potential military action. His scheduled national address at 9:00 PM ET (10:00 AM Beijing time) further stoked safe-haven demand. Meanwhile, the U.S. warned of new sanctions on Russia’s energy sector if President Putin rejects a Ukraine peace deal. Ukrainian President Zelensky urged EU leaders to approve using frozen Russian assets to aid Ukraine during the upcoming summit.

- **Equities & Dollar**: U.S. stocks fell broadly, pressured by tech sector woes tied to AI funding concerns, potentially diverting flows to gold. Despite a Wednesday rebound, the dollar has lost 9.3% YTD—its worst annual drop since 2017—lending long-term support to gold. Traders await central bank decisions from the BoE, ECB (Thursday), and BoJ (Friday), which may further sway currency markets.

Tonight’s U.S. CPI report and weekly jobless claims (due at 8:30 PM ET) will be critical. Bullish data could reinforce rate-cut expectations, pushing gold toward resistance at $4,400.

**Technical Outlook**: Gold remains above its 5-day moving average but shows signs of consolidation amid tepid bullish momentum. Hourly charts reveal a retreat into a triangular pattern after briefly breaching upper resistance, with overbought signals hinting at further correction. Key levels to watch: - **Upside**: $4,340–50 (triangle resistance) - **Support**: $4,315–10 (5-day MA), with a break potentially testing $4,290 (lower trendline).

**Trading Strategy**: Given choppy price action, traders may consider range-bound strategies ($4,340/50–$4,290) with tight stops (~10 points). Positions should be adjusted post-CPI release.

*Disclaimer: This content is for informational purposes only and does not constitute investment advice.*

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