Gold market analysis

"Gold and Silver Turned Down on the Day, Short-Term Upward Trend Ended" 30/12/2025 10:32 Finalized 

Yesterday, the prices of gold and silver reversed in a single day and closed in a strong bearish pattern that was nearly a piercing through. In terms of volatility, the gold price dropped by more than 246 US dollars in a single day, the largest decline since the sharp fall on October 21 this year. The silver price fluctuated by more than 7.36 US dollars, the largest ever. Judging from this, the short-term upward trend of gold and silver prices has ended. 

As of December 29th, this year, the price of silver (3-month silver) has risen by 133.93%, making it the commodity category with the largest increase. The price of gold (2-month gold) has also risen by 55.89%. Given that the 9RSI on the daily chart of gold is still as high as 96 and the RSI of silver has reached 94.6, with both having seen significant increases and remaining in a severely overbought state, if a major correction occurs, there is clearly still a considerable potential for decline. 

Gold prices hold above the 20-day moving average, indicating potential for a rebound. 

However, the sharp decline in gold and silver prices yesterday has created a considerable rebound space. From a technical analysis perspective, the stop-loss level for short positions should be set above yesterday's high, but this is obviously impractical. Therefore, the 50% retracement of yesterday's range can be regarded as an important resistance level. Specifically, the short-term rebound resistance for gold is $4,426.93, and for silver, it is $77.085. Additionally, gold tested and briefly broke through the 20-day SMA ($4,328.72) on the daily chart yesterday and this morning, and has not yet fallen below this line, so it can be considered a short-term important support level. Silver, on the other hand, still has some distance from the 20-day SMA ($65.87) on the daily chart. 

Regardless, at present, it is judged that the gold price may rebound in the short term. However, overall, it is still viewed as ending the upward trend. Investors cannot ignore any downward signals. The gold price is currently expected to fluctuate between $4,410 and $4,310, with the first rebound resistance being the 20SMA on the hourly chart at $4,388.5, which is close to the important resistance level of $4,410 on the Gann Square. The gold price dropped to a low of $4,302 yesterday. As for the silver price, it is currently struggling near the 20SMA on the hourly chart at $73.55, and the 50SMA at $75.16 is expected to offer greater resistance. 

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