Gold price today: Unexpected reversal and sharp declineAt the start of December 28th, gold closed at $2,621/ounce, down by $18 from the highest point during the previous night's session, which was $2,639/ounce.
Gold prices today are under pressure due to the sharp rise in U.S. bond yields to 4.63%, prompting investors to shift their capital into bonds for better returns. As a result, the flow of funds into the gold market has been limited, causing the price of gold to decline.
Looking ahead to early 2025, I forecast that the potential tightening of U.S. monetary policy will continue to support bond yields and the U.S. dollar. Higher bond yields typically increase the opportunity cost of holding gold, which can exert downward pressure on its price. Additionally, the strengthening U.S. dollar makes gold more expensive for investors using other currencies.
Both factors tend to reduce gold's appeal, potentially limiting its price increase in the first half of 2025.
From the 4-hour chart, gold is currently in a downtrend. With two important resistance levels at $2,628 and $2,634/ounce, it is unlikely that gold will break through these levels and rise in the near term. While gold may trade sideways to test these resistance levels, it is more likely to retreat and test the support level at $2,615. If there are no major news developments, gold may continue to decline and break through this support level, moving lower.
