Gold surged and then retreated ahead of Christmas Eve, with the evening primarily seeing fluctuations while waiting for the trend to follow after the holiday.

The atmosphere for the Christmas holiday is gradually intensifying, and major global exchanges are successively entering a holiday mode, significantly shrinking market liquidity. The daily trend of gold displayed a typical characteristic of profit-taking before the holiday. In the morning session, the gold price once surged to a recent high near 4525, and then retreated under the influence of some investors' risk-off sentiment. During the Asian session, it sharply fell and touched the support level of 4471 before quickly stabilizing. In the European session, it was trapped in a narrow range between 4480-4500, with both bulls and bears temporarily in balance.

Core driving factors behind the market

The holiday effect dominates the market rhythm, with the evening overseas markets gradually ceasing trading. Additionally, the market will close early at 2:45 AM today and will be closed for trading all day tomorrow. In the limited trading time, it is difficult for funds to form sustained momentum, naturally limiting the volatility space.

The fundamentals show a mixed situation. The stronger-than-expected U.S. third-quarter GDP data puts short-term pressure on gold prices, but the rising expectations for the Federal Reserve to cut interest rates in 2026 and the ongoing geopolitical conflict between the U.S. and Venezuela provide solid support for gold prices, limiting the depth of the pullback.

The technical aspect shows that the bullish trend remains unchanged, with gold prices still running steadily above key moving averages. However, the 14-day relative strength index has entered the overbought zone, and short-term fluctuations are needed to digest profit-taking, building momentum for subsequent rises. $BTC #比特币与黄金战争