Gold Prices Correct After Record High, Upward Trend Still Maintained

World gold prices (XAU/USD) recorded weakness in the latest trading after previously setting an all-time high in the range of close to US$4,526 on Wednesday (24/12). At the beginning of this week, Monday (29/12) in the Asian session, gold appeared to be weakening and was trading in the US$4,470 area. This condition occurred amidst increasing market volatility due to decreasing liquidity ahead of the Christmas holidays. Despite experiencing a correction, gold still posted gains of almost 3% on a weekly basis, which reflects that the bullish trend still dominates.

Dupoin Futures analyst, Andy Nugraha, assesses that the current weakening in gold prices is more triggered by short-term profit taking after a significant price spike. According to him, from a technical point of view, the structure of gold’s movement still shows an upward trend. Analysis based on candlestick patterns combined with the Moving Average indicator shows that XAU/USD is still moving in a strong uptrend.

Andy Nugraha explained that as long as the gold price is able to stay above the main support zone, the dominance of buying pressure is still relatively maintained. He added that the correction that is currently occurring is technically normal, considering that the price increase has been quite aggressive in recent times.

In daily movement projections, Dupoin Futures Indonesia estimates that if bullish momentum strengthens again, gold prices have the opportunity to continue their increase towards the US$4,575 area as the nearest target. On the other hand, if selling pressure increases and the strengthening fails to continue, then the potential decline is expected to lead to the level of US$4,470 which functions as short-term support.

From a fundamental perspective, gold’s rally so far this year has been recorded as one of the strongest in recent decades. Since the start of the year, the price of gold has soared more than 70%, putting it on track for its best annual performance since 1979. This increase was driven by increasing interest in safe haven assets amidst global geopolitical uncertainty, the risk of an economic slowdown, as well as the heavy flow of institutional funds into the precious metal.

Another factor that helped support the movement of gold was the weakening of the United States dollar. Pressure on the US currency was influenced by US President Donald Trump’s protectionist trade policy and the Federal Reserve’s dovish monetary policy stance. Throughout 2025, the Fed has cut its benchmark interest rate by a total of 75 basis points, and the market is still projecting two additional cuts next year. This low interest rate environment increases the attractiveness of gold because it lowers the opportunity cost of owning a non-yielding asset.

Meanwhile, the release of United States economic data showed mixed signals. Initial jobless claims recorded decreased to 214 thousand, lower than market expectations. However, continuing unemployment claims actually increased to 1.923 million. On the other hand, US economic growth in the third quarter was recorded quite solid at 4.3%, exceeding previous estimates.

Looking ahead, Andy Nugraha estimates that gold prices have the potential to move in a consolidation phase in the short term, as new catalysts are limited and the tendency for profit taking increases towards the end of the year. However, the prospect of an increase in the medium to long term is still considered open, with the opportunity for the gold rally to continue until 2026 as long as global uncertainty and loose monetary policy are still the main factors in the market.

This press release has also appeared on VRITIMES