After achieving an unprecedented daily closing price record on Wednesday, spot gold continued to trade at elevated levels on Thursday, prompting analysts to anticipate sustained strength well into the new year.
Despite a brief dip below $2,000 in early December following a rapid retreat from the $2,100 threshold, gold has rallied impressively. Justin Low, a currency analyst at ForexLive, highlighted the resilience of gold bugs in pushing the precious metal to a record high close this week.
Examining gold’s ascent from $1,982 on December 13 to a high above $2,088, Low acknowledged potential doubts due to thinner liquidity conditions. However, he emphasized compelling arguments for further upward movement, particularly as the new year approaches and the seasonal tailwind in January presents a strong case for extension.
At the time of writing, spot gold is trading at $2,068.37 per ounce, down 0.41% in the session but up 1.8% over the last five days and nearly 2.7% for the month.
Low expressed uncertainty about gold’s immediate future, suggesting it is poised for either a surge to fresh record highs or a notable pullback before buyers reload on long positions. He cautioned against drawing significant conclusions from year-end and thin liquidity moves, maintaining reservations about the current high points for gold this week.
In contrast, other analysts are optimistic, looking beyond liquidity concerns to geopolitical and macroeconomic factors that signal continued strength in gold prices. Damian Nowiszewski, an analyst at Investing.com, pointed to a likely upward trajectory, with an initial target near $2,100 per ounce and the potential for new all-time highs in January.
Nowiszewski noted that recent strong demand established a new historical high around $2,150 per ounce, and while corrective movements are possible, buyers remain well-supported. The analyst identified key resistance areas near $2,100 and emphasized that potential corrections should be limited by the local upward trend line and demand zones around $2,000 and $1,950 per ounce.
