Yesterday's gold market experienced a "bloodbath," with prices plunging from above $4,500 all the way down, even piercing through the $4,303 level, with a single-day drop of over 200 points. Many investors who chased the rally at that time were caught off guard, as the gains from the previous week vanished in an instant. As December approaches its end, the battle for the annual line will intensify, and both bulls and bears are bound to clash hard.

The root cause of this rapid decline actually boils down to two key factors. First, the easing of the Russia-Ukraine situation quickly dampened safe-haven sentiment, completely erasing the risk premiums that had accumulated due to geopolitical tensions. Second, there are clear disagreements over the Fed's rate cut expectations in 2026, coupled with year-end consolidations and profit-taking by major institutions, which naturally amplified the market’s selling pressure.

But here’s an important point to understand: the medium- to long-term bullish logic has not been fundamentally broken. Central banks around the world are still accelerating gold reserves, and the overall direction of the Fed’s rate cuts remains unchanged. This sharp decline is essentially just a technical correction within a bull market, not a fundamental trend reversal.

Regarding early trading operations, several key levels must be monitored at all times:

**Resistance above is around 4350-4360.** Yesterday’s rebound stalled in this zone without breaking through, and the short-term moving averages are showing a death cross, continuing to suppress prices. If the price in the early session cannot reach this level or reaches it without sufficient volume and then drops, short-selling opportunities will emerge.

**Support below initially focuses on 4300-4280.** This is not only yesterday’s lowest point but also the launch pad of the previous upward trend, making it a crucial battleground for both bulls and bears. When the price first touches this zone, a light long position can be considered, but if it truly breaks below 4280, then look further down to the 4250 support level.

Overall, the 4305-4280 zone is an ideal area for long entries. The initial upside targets can be set at 4350-4400. If this range is effectively broken through, the case for holding positions increases. Of course, any investment decision should be based on your own risk tolerance, as the market is always full of uncertainties.