2025-12-24 14:26:59

Christmas holidays are approaching, and major global exchanges are gradually entering holiday mode, with liquidity noticeably tightening. This pre-holiday atmosphere has brought about typical profit-taking characteristics for gold prices.

This morning, gold prices briefly surged to around 4525, near a recent top, showing a good momentum, but then encountered profit-taking as investors took profits, causing the price to retreat. During the Asian trading session, it even sharply dipped to the support level of 4471, but quickly stabilized. By the European session, the market fell into a narrow range of 4480-4500, with both bulls and bears temporarily at a stalemate.

**Several key factors driving the market:**

The holiday effect directly suppresses trading activity. The evening session's overseas markets gradually closed, and at 2:45 AM today, the market closed early, with trading halted for the entire day tomorrow—such limited trading windows make it impossible for funds to generate sustained momentum, naturally restricting volatility.

The fundamentals are mixed. The US Q3 GDP data came in stronger than expected, exerting short-term pressure on gold prices. However, on the other hand, the Fed's rate cut expectations for 2026 are heating up, and geopolitical conflicts between the US and Venezuela continue to ferment. These factors provide solid support for gold prices and prevent a deep correction.

From a technical perspective, the bullish pattern has not been broken, and gold remains firmly above the key moving averages. However, the 14-day RSI indicator has already entered overbought territory, indicating that short-term consolidation is needed to digest short-term positions and accumulate energy for the next rally. This consolidation phase presents an opportunity for long-term bullish investors.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
5
Repost
Share

Comment

0/400

FreeRider

· 3h ago

As soon as the holiday started, liquidity evaporated directly, and gold prices fluctuated back and forth between 4480-4500, which is a bit boring. Wait, RSI is already overbought and still pushing higher? How long can this consolidation last? The early rally to 4525 was immediately smashed down, typical pre-holiday behavior. The market will close tomorrow, and today's volatility might mean we have to hold the position until dawn. Geopolitical factors combined with rate cut expectations are supporting the market; otherwise, it would have fallen below 4471 already.

View OriginalReply0

DegenWhisperer

· 3h ago

No one is playing during the holiday, and in just a few hours, it dropped from 4525 to 4471. Truly incredible... But on the other hand, this kind of market is actually good for bottom fishing. The RSI is already overbought, so a shakeout and digestion are definitely coming.

View OriginalReply0

GasFeeVictim

· 3h ago

Holiday mode is like this, nothing much happening. The repeated tugging between 4480-4500 is quite boring. We'll have to wait until everything stops tomorrow to see the clear direction.

View OriginalReply0

GasFeeGazer

· 3h ago

The liquidity during the Christmas holiday tightens, and this is the result. The early session saw too many quick rises and dips. It's better to wait for the New Year’s wave to take action.

View OriginalReply0

ColdWalletGuardian

· 3h ago

The holiday has just started, and the bloodletting begins. This round of profit-taking is really fierce. --- Is the market closed all day tomorrow? Then I might as well sleep honestly tonight, I can't do anything anyway. --- Holding steady at 4471 is still somewhat interesting; this support level is really solid. --- RSI is overbought and still pushing upward, a typical sign of energy accumulation, waiting for a breakout. --- Geopolitical conflicts are still fermenting; this is the true safe haven for gold prices. --- When liquidity tightens, the market starts to tug-of-war; it's so boring. --- Buying gold when rate cut expectations heat up—this logic couldn't be clearer.

View OriginalReply0