Gold market analysis

"Gold Price Stabilizes at 4,300, Optimistic Outlook" 15/12/2025 10:23 Finalized 

Gold prices remained strong last Friday. The spot gold price held above $4,264 in the early Asian session and then started to rise in the afternoon. It showed a strong one-sided upward trend after the European market opened. The upward trend continued after the New York market opened, reaching a high of $4,353.70. However, it dropped sharply before the London market closed, hitting a low of $4,257.34, and then gradually recovered, closing above $4,300. 

Gold prices rose steadily last Friday, a move that was not driven by ordinary investors but rather by the market's accumulation. However, if ordinary investors have the courage to follow, they can also gain substantial profits under the protection of the market. As for the sharp drop before the London close, it was likely caused by liquidation orders. But gold prices still rebounded by more than $40 from the day's low to close in the New York afternoon session, indicating that the upward momentum of gold prices has not waned. 

Non-farm payroll data is expected to add momentum to gold prices. 

I still believe that the strong rise in gold prices is due to the dovish signals sent by the Federal Reserve - cutting interest rates and halting balance sheet reduction. On the other hand, the employment report closely watched by the Federal Reserve will be released tomorrow. Some financial institutions predict that non-farm payrolls will increase by 40,000 in November, far lower than the 119,000 in September, while the unemployment rate is expected to remain at 4.4%. This is already sufficient to provide a basis for further gains in gold prices. 

The spot gold price reached a temporary high of $4,323.03 in the Asian market this morning, with a low of $4,300.12, indicating that the price has formed a strong support at $4,300. Additionally, as the gold price has broken through the 180-degree strong resistance of the Gann Square at $4,310, it is expected that the price will fluctuate between $4,310 and $4,360 in the short term. Of course, given the current strength of the gold price, the probability of challenging the historical high of $4,381 and even breaking through $4,400 to set a new record high is extremely high. 

Gold at $4,353 has a double top risk. 

From the hourly chart, it can be seen that the gold price dropped sharply before the London close last Friday, slightly testing the top of the large sideways range but not breaking through the 50SMA (currently around 4270.7), and ultimately closing above the top of the sideways range. In the short term, the important support levels for the gold price within the day are $4310 and $4300. Even in the most pessimistic scenario, it is expected that there will be support around the top of the aforementioned large sideways range at approximately $4265. Additionally, it should be noted that if the gold price approaches $4353 or slightly breaks through this level, there is a risk of a double top. However, the current judgment still leans towards a gradual upward trend. Under these circumstances, investors only need to operate based on technical signals and do not need to make unnecessary guesses. Confidence or fear will only have a psychological impact on you and have no influence on the trend of the gold price at all! 

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