Gold market analysis

"Gold Price at $4,500 Becomes Short-Term Strong Support" 12/1/2026 10:33 Finalized 

Last Friday, gold prices broke through the $4,500 mark with the help of the poor December non-farm payroll data, reaching a high of $4,517. Although it retreated in the New York midday session, it rebounded after hitting a low of $4,482 and closed at $4,510.45, which was a secondary resistance at the 315-degree angle of Gann's theory. It was uncertain whether it would break down or up. However, this morning, gold prices opened higher in the Asian session with a gap and continued to climb, reaching a high of $4,601.17. Subsequently, a head and shoulders pattern emerged on the 5-minute chart, and it gradually declined. 

Gold prices suddenly soared, believed to be due to the US Department of Justice sending a grand jury subpoena to the Federal Reserve Board last Friday, threatening to file criminal charges against Fed Chair Powell's testimony before the Senate Banking Committee last June, which partly involved the Fed's multi-year renovation plan for its office building. As such, the sharp rise in gold prices this morning lacks a more lasting support. According to CME FedWatch, the interest rate futures market expects the Fed to keep interest rates unchanged at all monetary policy meetings before June this year, and to cut rates by 25 basis points at the June meeting, right after Powell's term ends. Moreover, whether Powell will be convicted will go through a lengthy judicial process, which inevitably leads people to view this event from a conspiracy theory perspective, with Trump attempting to divert public attention. 

Despite gold and silver prices hitting new record highs, the rationale supporting further gains in gold prices is extremely fragile. Technically speaking, gold prices found support at $4,561.92 this morning, and $4,560 is one of the Gann angles, indicating that gold prices are likely to fluctuate between this level and $4,610 within the day. The stronger resistance level is at $4,660 on the horizontal line. In contrast, $4,550 and $4,500 have become short-term strong support levels. Unless the above-mentioned events become clear and are in Powell's favor, there is currently no reason to expect gold prices to fall below $4,500. Gold prices are likely to fluctuate between $4,560 and $4,610 within the day, with a broader range of movement between $4,500 and $4,660. 

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