Gold market analysis

"Gold Prices Break Out of Large Consolidation Zone" 12/12/2025 10:26 Finalized 

Yesterday, the gold price performed stronger than expected. Although the spot gold price dropped sharply from the Asian market high of $4,247.79 to a low of $4,204.42 at the opening of the European market, it gradually rebounded. However, it was blocked at the high of $4,226 in the midday of the European market. At the opening of the New York market, it fell to a low of $4,205.55. But just like at the opening of the European market, the gold price turned upward within one hour. Subsequently, the upward trend was intense. Not only did it break through the Gann angle at $4,260 and the head and shoulders bottom measurement target of $4,268 on the hourly chart, but it also reached the short-term resistance zone of $4,286 in the early afternoon of the New York market. The gold price then closed with a long bearish candle on the hourly chart, which was a piercing pattern. 

It would be no surprise if a new high is reached within the year. 

Although the highest price of gold in Asian market today was only $4,283.84, which failed to break through yesterday's high, the pullback was relatively small. A careful observation shows that after the long bearish candlestick with a lower high and lower low yesterday, gold did not enter a sustained correction phase but consolidated above $4,260. From the hourly chart, spot gold has broken through the high of $4,264.68 made on December 1st. The lows in New York yesterday and in Asian market this morning were $4,263.31 and $4,264.9 respectively, which are very close to the above-mentioned price. Therefore, it can be inferred that the upward trend of gold has entered a new stage and a new round of upward wave is about to break out. It is not surprising that it will set a new historical high in the remaining time of this year. If gold breaks through $4,400 and holds above that level, the upward trend in early next year will be even stronger! 

The range from 4260 to 4245 is a strong support zone. 

From the perspective of Gann Square, the key support level for gold price within the day is $4,260. As previously analyzed, it is unlikely that the gold price will fall below $4,260. If the bulls want to maintain control of the overall situation, $4,260 must not be lost. To take a step back, $4,245.77 is the next level of support, which is the 50% retracement level from yesterday's New York low to this morning's high. However, if the closing price today is below $4,260, it will weaken the strong upward trend of the gold price. For the time being, it is judged that the gold price will consolidate above $4,260, and the possibility of challenging $4,310 within the day is very high. It is believed that the adjustment range within the day is extremely limited, and the range from $4,260 to $4,245 can be regarded as a strong support zone. 

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