On Tuesday Asian market open, spot gold continues to fluctuate near the lows, with prices hovering around the $4,330 level. As 2025 approaches its conclusion, the precious metals market has experienced a sharp sell-off—London gold plummeted nearly $250 in a single day, while silver and platinum also retreated from their historical highs. The main factors behind this decline are twofold: first, the approaching year-end holiday season tightening market liquidity; second, profit-taking from the sustained rally over the past few months. The combination of these factors has directly intensified the gold price correction.

But don’t rush to bearish outlooks. Although short-term gold prices are under pressure, the medium- and long-term support logic remains solid. The market generally expects the Federal Reserve to initiate a rate-cut cycle next year, which will directly reduce the opportunity cost of holding non-yield assets like gold—simply put, the cost of holding gold will decrease. Additionally, political debates over the Fed’s independence are heating up, further increasing market uncertainty and providing a strong underlying support for safe-haven demand.

From a technical perspective, gold began to correct after reaching a new high of $4,550. On Monday, the daily retracement was nearly $250, with prices falling to $4,303. The daily chart shows a large bearish engulfing pattern, and the NY closing price broke below the 10-day moving average (MA10) for the first time since November 24—an obvious bearish signal. Currently, MA10 and MA7 are at $4,393 and $4,420 respectively, and the RSI indicator has turned downward, indicating that short-term downward momentum still has some residual strength.

Shorter-term charts provide clearer insights. On the four-hour and hourly levels, prices continue to operate within the middle and lower bands of the Bollinger Bands, which have already opened downward, indicating that the short-term downward momentum has not yet fully played out.

Operational suggestions are as follows: for short-term long positions, consider entering around $4,280–$4,285 with a stop-loss at $4,265, targeting $4,370–$4,400; for short-term short positions, consider entering around $4,385–$4,390 with a stop-loss at $4,405, targeting $4,330–$4,300.

Risk management is especially emphasized. Multiple warnings have been issued previously that after a rapid rally from lows, gold has accumulated reversal risks. The short-term strategy should mainly focus on shorting rebounds, with long positions used as auxiliaries. With the New Year’s approaching and the final phase of 2025, market volatility is bound to increase. It’s crucial to control position sizes and strictly adhere to stop-loss orders—stability is the best approach.

Key support levels are at $4,320, $4,303, and $4,286; resistance levels are at $4,376, $4,393, and $4,420. These levels are important to monitor in the upcoming trend.