Gold Price Analysis (December 31)

Market Overview: Precious metal prices fell slightly on Wednesday (December 31), but the industry as a whole is still expected to perform strongly at the end of 2025✨! The price of silver has risen by about 140% since the beginning of the year, which is an amazing performance🚀; while the price of gold has risen by more than 60%, recording its strongest annual gain since 1979! Spot gold fell 0.4% to $4,329.12 an ounce at the time of writing, having hit its lowest level in more than two weeks at $4,274.44. Last Friday, the price of gold rose to an all-time high of $4,549.71, which was an exciting move indeed 💥!

Analysis of influencing factors: The recent price drop is mainly due to the sudden increase in exchange margin requirements, resulting in a decrease in short-term trading volume💧. However, the foundation of the gold bull market is very solid👍:

Monetary policy expectations: Expectations for the Federal Reserve to cut interest rates continue to rise, with market speculation that the new Federal Reserve may be more easing, giving gold a strong boost🕊️;

Geopolitical risk: Tensions in multiple global hotspots are driving growing demand for safe-haven assets 🌍;

Structural demand: Global central banks are buying aggressively, and gold ETFs continue to increase their holdings – this support is very strong💪!

Technical Analysis: Monday’s big drop was a bit painful 😅, but considering the nearly 70% gain this year, it was just a breakout for the bull market. Looking at the current 4-hour chart, gold prices are facing pressure from the short-term moving average, and the trend is obviously in the correction stage. The main support level is $4,280. If the price fails to hold, a test of the $4,260 defense line may be possible 📉. What should I do if I go up? The 4340-4350 area is the first pass, with stronger resistance near 4370. A rebound to this level represents an excellent short-selling opportunity!

Trading strategy suggestions:
Overall strategy: Sell high! 🎯 Long positions are only suitable for small, short-term trades aimed at profiting from rallies.

Short position strategy: Consider shorting in batches when gold prices rebound to the 4340-4350 area. If the price unexpectedly rises to around 4370, don’t hesitate to continue shorting!

Long position strategy: Only consider quickly entering and exiting small positions when the price pulls back to around 4265-4270.

Critical level:

Resistor: 4340-4350, 4370 🚧

Support: 4280, 4260🛡️

Important Reminder: Today is the end of the monthly and annual trading day, so the markets may experience significant moves 🎢! Please trade with small positions and strictly abide by stop loss instructions. Never hold a losing position! The entry and exit points should be flexibly adjusted according to the actual market conditions. I wish everyone a successful transaction! 🎉

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