On December 24, we noted on Tuesday that approaching the Christmas holiday, reduced market liquidity, combined with rate-cut expectations and safe-haven demand, collectively drove gold prices higher. Short-term technical indicators also suggested potential for further upward momentum. We recommended monitoring key support at the $4,400 level and resistance near $4,450, with a breakthrough potentially targeting $4,500 if new highs were achieved.
Subsequent trading saw gold stabilize above $4,450 in early Asian hours, rallying to $4,497 before facing resistance. Multiple attempts to breach the $4,500 threshold during Asian and European sessions failed. U.S. trading saw another push to $4,497 followed by a brief dip to $4,430, but prices quickly rebounded, testing higher levels and closing at a fresh all-time high of $4,499. The overall movement—breaking Monday’s peak of $4,449 while testing $4,500 resistance—aligned with our outlook.
Wolfinance’s star analyst highlighted that gold’s surge to record highs on Monday, followed by another peak on Tuesday, was fueled by sustained rate-cut bets and geopolitical hedging. Holiday-thinned liquidity amplified price swings, while reinforced expectations for Fed rate cuts in 2026—bolstered by cooling U.S. inflation and labor data—weighed on the dollar, driving it to multi-month lows. Escalating tensions in Ukraine, the Middle East, and U.S.-Venezuela friction further spurred safe-haven inflows.
Technically, gold’s back-to-back record closes underscore bullish momentum. Key support now sits at $4,470 (Tuesday’s consolidation level post-breakout) and $4,430 (intraday rebound base). Resistance remains at $4,500; a decisive breakout could open the path toward $4,600 (weekly Bollinger Band upper bound). Aligned golden crosses in the 5-day MA, MACD, KDJ, and RSI confirm near-term bullish dominance.
Trading strategy: Maintain a range-bound approach, with supports at $4,470/$4,430 and resistance at $4,500. A breakout above this level suggests extended upside, with $4,600 as the next technical target.
Disclaimer: Market analysis provided for informational purposes only, not investment advice. Investors assume all risks.
