Gold Price Outlook: Potential Decline Ahead

Analyzing the current landscape during the Christmas holiday, gold prices ("XAU/USD") are likely to maintain their upward trend, hovering around the psychological resistance of $2,000 per ounce. The ongoing weakness of the US dollar continues to support the bullish sentiment.

From a technical standpoint, key resistance levels stand at $2,055, $2,070, and $2,085. These levels have pushed technical indicators into overbought territory, signaling a potential for profit-taking sales. With prices just below $100 per ounce, investors are advised to exercise caution in this slightly volatile market.

Despite concerns about prolonged conflicts, gold prices remain high, setting a robust foundation for potential future increases. Modest purchases by exchange-traded fund (ETF) investors could significantly impact market sentiment. The pace of new buying may hinge on the Federal Reserve's interest rate cuts in the coming year. Derivative traders are pricing in a cautious approach, potentially influencing gold prices. In summary, the gold market shows resilience, but caution is advised amid potential profit-taking and market uncertainties.