Gold market analysis

"Gold Price Held Below 4150, Continues to Adjust" 12/11/2025 9:47 Finalized 

Yesterday, gold prices reached a high of $4,148.92 in the early part of the Tokyo midday session before entering a sideways pattern. In the early part of the European session, they twice fell to the $4,125 level, which clearly provided support, and then rebounded to $4,145 but encountered resistance. Even when the New York session began, the sideways range only expanded to between $4,146 and $4,124. This was likely due to the absence of economic data releases in the United States, causing the market to fluctuate within a narrow range. Near the New York midday session, gold prices finally broke below the bottom of the sideways range, hitting a low of $4,097.26 before gradually recovering. They ultimately closed at the $4,126 level. 

The Hengxing Market is favorable for short-term trading. 

In the face of the narrow fluctuation of gold prices, it is extremely favorable for short-term speculators. There is no need to worry about a strong trend market after the gold price breaks through the resistance or falls below the support level. As long as they sell near the top of the horizontal range and buy near the bottom, setting a stop-loss of a few dollars is sufficient. By operating in this way back and forth, the profits obtained may be greater than the range of the horizontal movement! 

There are no significant data releases in the US tonight either. Market focus is expected to shift to the release of the October CPI on Thursday. However, as the government remains shut down, it is uncertain whether the CPI will be released on schedule. Even if it is released on time, its accuracy is also in question. Nevertheless, some institutions predict that the overall CPI for October will rise by 0.4% month-on-month and 3.1% year-on-year, while the core CPI will increase by 0.3% month-on-month and 3.1% year-on-year. Such a scenario would indicate a further rise in inflation, reducing the possibility of a rate cut in December and being unfavorable for gold prices. 

$4,039 is expected to offer support. 

This morning, gold prices continued to rise on the back of the previous day's rebound, but after reaching a high of $4,145.5, they were held back and fell. From the hourly chart, it can be seen that gold prices have made three attempts to break through $4,150 but have not succeeded yet, so this level can be regarded as a short-term important resistance. On the contrary, if it breaks through this level, it is expected that gold prices will challenge $4,210. However, gold prices failed to rise further. Technically, this is because they have rebounded by 50% of the largest decline since the historical high on October 21. In terms of news, the main reason is that the Federal Reserve may not cut interest rates in December. Secondly, the US CPI data to be released on Thursday this week may reflect rising inflation. Therefore, it is expected that the short-term probability of gold prices continuing to decline is relatively high, and it is expected to find significant support around $4,039. 

The above content is for reference only and does not constitute investment advice.