Gold has taken a pause after reaching a record high of $4,526, now trading at approximately $4,485, which is a drop of 0.25% for the day. This decline comes as traders opt to take profits amidst a positive market backdrop.<\/p>\n
Expectations of a dovish stance from the US Federal Reserve may limit the recovery of the US Dollar, providing support for Gold. Geopolitical uncertainties also contribute to the potential benefits for Gold, serving as a caution to bearish trends.<\/p>\n
The daily chart shows that the Relative Strength Index (RSI) indicates overbought conditions, which has initiated some profit-taking activity. Nonetheless, the overall technical outlook remains favourable for those looking to buy dips, supported by the ascending channel and strong moving averages.<\/p>\n
As Gold remains above the 50-day Simple Moving Average at $4,167.09, any pullbacks are likely to be temporary. The Moving Average Convergence Divergence (MACD) suggests ongoing momentum for bulls, with its line above the Signal line. Overall, while a pause is possible, it does not undermine the trend’s upwards trajectory.<\/p>\n
With gold taking a breather just below the $4,500 mark on Christmas Eve, we see this as a healthy pause rather than a trend reversal. The run to the all-time high of $4,526 was rapid, and the overbought RSI suggests some profit-taking in thin holiday trading is to be expected. This slight pullback should be viewed as a potential opportunity in the coming weeks.<\/p>\n
The fundamental picture strongly supports gold, driven by expectations of a dovish Federal Reserve in the new year. Recent economic data from late 2025 confirmed this outlook, with November’s Non-Farm Payrolls coming in at a weaker-than-expected 95,000 and the final Q4 GDP forecast being revised down to just 0.8%. This environment caps the US Dollar’s potential and makes non-yielding gold an attractive holding.<\/p>\n
We should remember this rally has been building for a while, accelerating through the persistent inflation we saw in 2024. Geopolitical tensions and record central bank buying, which the World Gold Council reported hit a new quarterly high in Q3 2025, continue to provide a solid floor for prices. This institutional demand is a powerful force that limits the potential for any deep correction.<\/p>\n
For derivative traders, this dip presents a chance to position for the next move up. We are watching the former channel resistance around $4,430 as an initial support level for initiating new long positions. Using options, such as buying call spreads, could be a prudent way to participate in further upside while limiting risk at these elevated prices.<\/p>\n
While the trend is strong, a deeper pullback toward the 50-day moving average at $4,167 cannot be ruled out if profit-taking accelerates after the holidays. That level represents a more significant line of support that bulls will need to defend. As long as gold holds above there, the structural uptrend we have seen develop over the past two years remains firmly intact.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold retreats slightly after record high; profit-taking, bullish momentum, and technical support suggest upward trend continuation.<\/p>\n","protected":false},"author":62,"featured_media":16973,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=37684"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37684\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16973"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=37684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=37684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=37684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}