Can’t keep a good gold down. That seems to be the mantra for 2025 and that’s still persisting as we get into the final month of the year. After a rush higher to start October upon clearing $4,000, gold hit an air pocket before consolidating in a flag/wedge pattern well into November trading. But in ending the month, buyers made a move and now we’re starting to see a technical breakout in a push higher above $4,200 again.
The nudge higher now threatens a daily break above the November high of $4,245, with the highs today being the most in nearly six weeks. As mentioned last week, clearance above $4,200 should continue to keep bulls flying high and the price action today looks to reaffirm that.
In terms of fundamental plays, the Fed being poised to cut rates remains one of the more bullish factors underpinning gold alongside political and geopolitical uncertainties still engulfing markets across the globe. But perhaps it is more straightforward in the sense that demand conditions continue to run more rampant as well, especially when it comes to talks of de-dollarisation and central banks globally – especially China – continuing to ramp up gold buying.
Besides that, flow patterns are also going to be a supportive factor with December being one of the better months for gold in recent years. Last year was an exception though, so will 2025 repeat that pattern or will this year stick to the seasonal norm?
This article was written by Justin Low at investinglive.com.