As the Christmas holiday approaches, global trading markets are gradually hitting the pause button, but the upward momentum of gold shows no signs of weakening. This is not a short-term hype; there is a deeper logical support behind it.

Speaking of this round of continuous gold price increases, one core background cannot be ignored—the restructuring of foreign exchange reserve compositions by global central banks. Many central banks are continuously increasing their gold holdings significantly under the strategy of foreign exchange diversification, providing a steady strategic demand for gold prices. Meanwhile, expectations of the Federal Reserve starting a rate cut cycle are growing stronger, directly lowering the cost of holding non-yield assets (such as gold), which has become a direct driver pushing up gold prices.

Ongoing geopolitical conflicts and the uncertain global economic recovery keep boosting gold’s appeal as a safe haven. Continuous buying inflows further expand the upside potential. From the supply side, gold production growth is limited, while demand from emerging industries like technology and manufacturing is steadily rising, creating a bullish supply-demand story. Multiple factors are stacking up, causing gold prices to even break the traditional inverse relationship with U.S. Treasury yields, forming a structural upward trend led by central bank gold purchases and macroeconomic sentiment.

Before the holiday, some short-term funds took profits and exited, causing a slight pullback in gold prices, but this is just a normal correction within a strong trend. Overnight, gold prices held steady at the key level of 4480, and technically, there is still momentum to push higher to 4550 or even 4600. In subsequent operations, don’t be bothered by short-term fluctuations; following the trend and going long is the way to go.

Trading suggestion: Buy on dips within the 4400-4430 range to capture trend-based gains. Focus on whether the support at 4445-4455 can hold, and be cautious of resistance at 4550 above. Be sure to control your positions near key levels to prevent risks from sudden market changes.