In the past 24 to 48 hours, gold (XAUUSD) has exhibited significant volatility, closing yesterday (December 18, 2025) at $4,335.16. The gold market recently has been driven by multiple factors; with the U.S. Consumer Price Index (CPI) data sparking speculation over interest rate adjustments, gold attempted to break above resistance levels between $4,370 and $4,380 but then pulled back, highlighting intense market tug-of-war.

Moreover, gold is recognized as one of the best-performing precious metals in 2025, gaining 65.9% year-to-date, reflecting continued investor confidence in gold as a safe-haven asset. Expectations of the Federal Reserve potentially cutting rates, combined with a weaker dollar, have further boosted gold’s appeal. Investors and traders are closely watching CPI as a key factor shaping monetary policy, which remains the core driver behind recent price fluctuations.

To relate it simply for the average investor, gold price movements mirror market anxiety about economic uncertainties and inflation risks. When interest rates are expected to come down, borrowing costs fall, making gold, which offers no yield but protects against inflation, an attractive option for wealth preservation.

Daily Chart

The daily chart shows XAUUSD maintaining a steady uptrend since the start of the year, moving along a medium-long term upward channel. Recently, gold has repeatedly tested resistance in the 4,370–4,380 USD zone but failed to decisively break through, marking this area as a strong resistance. Moving averages show the short-term 20-day MA above the longer-term 50-day MA, and MACD remains positively oriented, indicating a bullish medium-term trend. Bollinger Bands have widened slightly, reflecting recent increased volatility, with price near the upper band suggesting upward pressure that needs a breakout to sustain further gains.

1H Chart

On the hourly chart, the past 3-5 days reveal a consolidating upward trend in XAUUSD. Short-term moving averages are rising, and price has repeatedly held support at the 20-hour moving average. The MACD is generating a bullish crossover, signaling strengthening short-term momentum. Bollinger Bands exhibit a tightening pattern, pointing towards reduced volatility and consolidation before a potential breakout. The trading range in recent sessions is between 4,309 and 4,374 USD, highlighting critical support and resistance levels to watch.

Technical Trend:  XAUUSD is currently in a clear bullish phase, with an overall ‘Cautiously Bullish’ trend. Momentum is strong but short-term resistance levels require attention before continuation can be confirmed.

Technically, the daily chart shows a forming ascending triangle pattern initiated earlier this month; a decisive break above the 4,380 USD resistance could trigger a fresh bullish leg. The hourly MACD golden cross combined with stable support at the 20-period moving average suggests increased buying interest in the short term. The latest candlestick features a long lower shadow indicating buying pressure and solidified support, signaling potential upward momentum over the next 24 hours. Traders should watch the critical support zone around 4,335 USD for optimal entry points.

Today’s economic calendar features the Bank of Japan rate decision and press conference, scheduled in local Japanese time, representing a key event that could influence USDJPY and indirectly impact gold via currency fluctuations. Additionally, multiple U.S. data releases at 16:00 GMT+1, including consumer sentiment and inflation outlooks, will affect the U.S. dollar’s strength, which in turn influences XAUUSD pricing. While no direct gold-related economic events are scheduled today, developments in USD and JPY markets may indirectly sway gold’s price movement.

Resistance & Support

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