Safe-haven demand remains a significant long-term tailwind for gold and, of course, there’s lots more going on beyond the Fed’s policy moves that’s keeping gold in demand as a safe-haven asset. The global security situation remains tense, which is keeping people flocking to gold when they get nervous, even as markets are a bit thin and people take profits at the end of the year.

Central Bank Buying Anchors the Long-Term Trend

Central Bank Buying has helped keep the longer-term trend going strong and underpinning the whole gold price rally is the fact that central banks have kept buying gold & that the gold-backed ETFs are still holding pretty strong. All this steady demand has really helped absorb any volatility that’s come up and keep prices supported above some key long-term averages.

When the markets finally get back to work after the New Year break, you can bet that traders will be focusing hard on Fed guidance, real interest rates, and geopolitics to see if gold can finally make a move above where it is now or if it just goes sideways for a bit before deciding which way to go next.

Short-Term Forecast

Gold holds near $4,310 after the Dec 31 close. On reopening, a break above $4,360 targets $4,400–$4,450, while a slip below $4,280 risks $4,255 support.

Gold Prices Forecast: Technical Analysis