Today’s Gold Analysis Overview:
- The overall of Gold Trend: Strongly bullish.
- Today's Gold Support Points: $4490 – $4420 – $4360 per ounce.
- Today's Gold Resistance Points: $4570 – $4610 – $4680 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4610 with a target of $4300 and a stop-loss at $4667.
- Buy gold from the support level of $4390 with a target of $4700 and a stop-loss at $4320.
Technical Analysis of Gold Price (XAU/USD) Today:
The gold price index is stabilizing near its all-time highs at the start of the final week of 2025. Across trading platforms, spot gold prices rose to the $4550 resistance level before settling around $4532 per ounce. There is a sense of caution among gold investors regarding potential profit-taking sell-offs following a record-breaking, non-stop rally that has pushed all technical indicators into deep overbought territory. It is worth noting that gold trading has recorded gains exceeding 72% during the year 2025.
Global trade and geopolitical tensions, central banks' purchases of tons of gold for hedging purposes, increased buying by individual investors and exchange-traded funds (ETFs) heavily invested in gold, and the easing of central bank policies will remain the key factors driving the continued gains in the gold market in the coming months.
Currently, through the platforms of reputable trading companies, the path is clear for the gold index to reach the $5,000 per ounce resistance level, but only after the bulls successfully broke through the $4,600 and $4,750 per ounce resistances. Conversely, based on the daily chart performance, the $4,270 per ounce support level remains a potential first break point for the overall upward trend.
Trading Advice:
We advise following a low-risk "buy gold" strategy while maintaining constant monitoring of the market drivers listed in this analysis.
Safe Haven Demand Supports Gold Gains
According to gold analysts, gold's gains are continuing amidst increased demand for safe havens, in addition to positive technical indicators. The most prominent positive factors for the gold trading market include the weakness of the US dollar and escalating geopolitical tensions, particularly those in Venezuela, where the US imposed a blockade on oil tankers and intensified pressure on the government of Nicolás Maduro, thus enhancing gold's appeal as a safe haven. On another note, Washington launched a military strike against the Islamic State in Nigeria last Thursday. Adding to the uncertainty surrounding the resolution of the Russian-Ukrainian conflict, Zelensky is expected to meet with Trump soon to discuss a peace agreement. Renewed tensions in the Middle East are also contributing to market volatility.
The gold market is receiving momentum from the future outlook of US Federal Reserve policies. Expectations for interest rate cuts have increased following recent statements by Donald Trump, expressing his desire for the next Fed Chair to keep interest rates low, even calling for them to be reduced to 1%. Also, Trump emphasized his desire for the current president to never disagree with him.
After cutting benchmark US interest rates three times this year, the Federal Reserve lowered rates to a range of 3.50% to 3.75%. Regarding the future of rates, and according to the FedWatch tool of the CME Group, traders have now raised their expectations for the Federal Reserve to cut the interest rate by 25 basis points to 17.7% (compared to 13% a few days ago) at its meeting scheduled for January 27 and 28.
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