Gold market analysis

"Gold Price Faces Double-Top Risk but Remains Strong" 1/12/2025 10:09 Finalized 

Today marks the first trading day of the last month of 2025, and the gold price also witnessed a breakthrough trend after last week's Thanksgiving. The spot gold price broke through the lower trend line of the narrowing triangle on the daily chart last Friday. However, before the Tokyo midday session and the opening of the European market, the gold price exhibited extremely abnormal behavior, plunging by tens of dollars within one or two seconds. This situation became even more frequent as the European midday session approached. CME later issued a notice stating that due to a cooling problem at the CyrusOne data center, CME had suspended market operations. This is the fourth time that CME has failed to quote due to different reasons, causing market chaos. This is one of the risks faced by investors operating international trading products. 

$4,210 becomes the key support level. 

Spot gold prices broke through the 4210-dollar Gann 180-degree angle as expected. This level has now become the main support. This morning, it continued to reach a new high of 4252 dollars, just as I pointed out last Friday - challenging the high of 4245 dollars made on November 13th. Therefore, in the short term, we need to pay attention to whether a double top will form. However, the gold price trend is once again on the rise, and the 50SMA on the 5-minute chart (4236) is also clearly providing support. Given the current strong momentum of the gold price, unless there is a strong reversal signal, such as a double-line reversal or a piercing pattern, it is not advisable to take any short selling actions rashly. 

From Gann's perspective, the next target for spot gold prices to challenge will be $4,310, with a possible brief resistance at $4,260. Observing the hourly chart, if the movement since November 18th is regarded as waves 1, 2, and 3, the current gold price has reached the basic target of wave 3's rise ($4,240.81). There is indeed a risk of a brief adjustment, but it is expected that $4,236 will be the first significant support level, followed by $4,227, with $4,210 being the last line of defense. Investors planning to short sell should be aware that the gold price could rebound rapidly after approaching or breaking through these two levels. 

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