On Friday (December 19) in early Asian trading, spot gold was trading around $4336 per ounce. The release of the US November CPI data triggered this gold price fluctuation. According to the Bureau of Labor Statistics, consumer prices rose 2.7% year-on-year in November, far below economists' expectations of 3.1%. The weaker-than-expected US inflation data weakened gold's appeal as an inflation hedge, but support from rising unemployment limited the decline in gold prices.

This pullback in gold prices is a result of the interplay between US inflation data and market sentiment. Despite short-term weakness, the long-term trend for gold remains positive, with experts pointing to higher peaks. Investors should pay attention to the Fed's actions, data revisions, and political nominations, avoiding blindly chasing highs. Amid global uncertainty, gold remains a reliable safe haven, but a flexible strategy should be developed by combining silver and palladium dynamics with macroeconomic indicators.

From the daily chart for spot gold, yesterday's price action saw a low followed by a rebound, resulting in a candlestick pattern with a lower shadow. Although prices rallied again today, they encountered resistance at higher levels and are currently trading near the 5-day moving average (MA5). This has caused indicators to turn downwards, and if the moving average support is breached, a further pullback may occur.

From the 4-hour chart for spot gold, prices have been mainly trading below the 4354 level recently. Although there was a rally early this morning, prices quickly retreated after a false breakout to around 4375, returning to the trading range in the short term. It is recommended to continue monitoring the trading range and the direction of any breakout. Resistance: 4330-4340-4350 Support: 4320-4310-4300

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.