Over the past 24 to 48 hours, the gold (XAUUSD) market has shown significant volatility, closing at $4,338.99 on December 17, up from an opening of $4,308.07 the day before. Gold prices have held firm above the $4,250 level as traders focus on the upcoming US Consumer Price Index (CPI) data, awaiting its impact on inflation trends and future interest rate policies.

This week, silver stole the spotlight by rising nearly 4% to a record $66.22 per ounce, peaking intraday at $66.88, driven by economic and political tensions. This strong performance in silver has somewhat diverted attention from gold; however, gold remains favored for its safe-haven qualities. With growing optimism around potential Federal Reserve rate cuts, gold prices have trended higher, reaching near $4,350.

For the average investor, this means that amid rising global economic uncertainty and geopolitical risks, precious metals such as gold and silver stand out as critical assets for preserving wealth. Gold continues to serve as a stable hedge during market turbulence, while silver’s record highs indicate robust demand and confidence in precious metals overall.

Daily Chart

The daily chart shows XAUUSD steadily ascending from above $4,000 since late November, repeatedly testing and holding key support near $4,250. The price is gradually moving above the middle band of Bollinger Bands with moving averages aligned bullishly. The MACD presents sustained buy signals. The chart indicates XAUUSD is currently consolidating within a range, with solid support and resistance between $4,350 and $4,380, suggesting potential for further upward momentum once support is confirmed.

1H Chart

On the hourly chart over the last five trading days, XAUUSD has oscillated between $4,300 and $4,340, with volume fluctuating alongside price movement. Short-term moving averages show a slight upward trend and MACD momentum is picking up. A small ascending flag pattern is forming, indicating possible imminent breakout to the upside. Recent candlestick patterns, such as the morning star, strengthen bullish sentiment, suggesting a potential rebound within the next 24 hours.

Technical Trend:  Cautiously Bullish Trend

Technically, XAUUSD daily and hourly charts maintain bullish setups with a recent MACD bullish crossover and tightening Bollinger Bands suggesting a breakout is near. Robust daily support levels coupled with the minor ascending flag pattern on the hourly chart and confirmation from recent bullish candlesticks like the morning star reinforce buying interest. The market sentiment remains cautiously optimistic, encouraging dip-buying strategies especially near critical support zones.

Today’s GMT+1 economic calendar features the highly relevant U.S. Consumer Price Index (CPI) release at 14:30, with a forecast of 3.1% year-over-year and 0.3% month-over-month. The CPI data will crucially impact the USD; a higher-than-expected reading could strengthen the dollar and pressure gold prices, while a softer print could boost gold as a safe haven. Additionally, interest rate decisions from the UK and Europe are scheduled but expected to have secondary impact on XAUUSD. Overall, U.S. CPI is the key event to watch that will likely influence short-term gold price direction.

Resistance & Support

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