Eseandre Mordi
⬤ Gold has slipped below the critical $2,650 support level, opening the door for a potential move toward $2,630 in the coming sessions. The pullback stems from widespread profit-taking as large institutions and individual traders close positions before year-end. This wave of selling has cooled gold's recent rally and sparked a short-term correction as markets reassess direction.
⬤ Despite current weakness, gold's overall upward momentum remains solid. The pullback is seen as a normal correction within a larger bullish cycle rather than a shift in trend. How price behaves around $2,650 and $2,630 will be crucial in shaping gold's path through the final days of December.
⬤ Traders should watch the European and U.S. trading windows closely, as both sessions typically bring heavier volume and could amplify downside moves. With profit-taking still active, additional selling pressure may continue to weigh on gold during these peak hours.
⬤ This matters because corrections in gold often reflect broader shifts in investor sentiment, especially during year-end portfolio adjustments. While the long-term outlook stays positive, the near-term dip highlights the importance of tracking key support zones and trading activity as 2024 winds down.
Eseandre Mordi
