Uptrend Points to AB=CD Target, with Liquidity Potentially Becoming a Short-Term Variable

Summary:

After gold prices broke through US$4,100, bullish momentum persists as central banks' gold accumulation drives long-term foundations and bets on Federal Reserve rate cuts intensify.

BUY XAUUSD

Close Time

CLOSED

4163.99

Entry Price

4346.00

4085.00

4706.20 +15.44 +0.33%

393.5

Pips

Profit

4085.00

4203.34

Exit Price

4163.99

Entry Price

4346.00

Fundamentals

Gold prices climbed to a two-week high of US$4,169 on Wednesday. Earlier, stronger U.S. economic data bolstered expectations for a Federal Open Market Committee (FOMC) rate cut in December and weighed on the dollar. Spot gold rose over 0.7% to US$4,169, its highest level since November 14. Market expectations now lean more toward a December rate cut. Dovish comments from Federal Reserve officials and robust economic data bolstered this case, providing a boost to gold from a yield perspective.

Additionally, as December—the traditional peak season for gold sales—approaches, gold prices have firmly settled above the US$4,000 mark, increasing the likelihood of another historic high. From East to West, physical gold demand surges around year-end as Asia's wedding season—particularly in India—coincides with the Christmas and New Year holidays in Europe and the Americas. Meanwhile, central banks' ongoing gold purchases to bolster foreign exchange reserves and continuous inflows into gold ETFs further bolster prospects for another price rally.

Uptrend Points to AB=CD Target, with Liquidity Potentially Becoming a Short-Term Variable_1

Technical Analysis

From a technical perspective, after gold prices broke through the key level of US$4,161 on Wednesday, the market signaled an early upward trend for bulls to push prices higher later, thereby laying the groundwork for testing the target of the symmetrical AB=CD pattern (US$4,346).

The immediate focus now is on market liquidity ahead of Thanksgiving Eve. Should liquidity decline, it could trigger a degree of selling pressure, potentially disrupting the overall upward structure. A sell-off below the US$4,109 level may necessitate a reassessment by bullish positions.

Trading Recommendations

Trading Direction: Buy

Entry Price: 4125

Target Price: 4346

Stop Loss: 4085

Valid Until: December 12, 2025 23:55:00

Support: 4136, 4125, 4109

Resistance: 4170, 4211, 4232

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