On Monday (December 23), during the European and American trading session, spot Gold suddenly encountered fierce selling, with prices sharply retreating from a level close to $2634/ounce, at one point falling below $2610/ounce. FXStreet Chief Analyst Valeria Bednarik recently wrote an analysis on the technical outlook for Gold.

Bednarik stated that due to the recovery of USD demand, Gold prices are expected to continue downward trends and fall below $2600/ounce.

Due to the strengthening of the USD and rising U.S. Treasury yields, Gold prices were impacted on Monday with a decline. The USD rose by 0.4%, nearing a two-year high, reducing the appeal of Gold for holders of other MMFs.

Spot Gold closed down $10.70 on Monday, at $2612.33/ounce. During the New York session on Monday, the Gold price touched a low of $2608.10/ounce.

Investors are awaiting clearer guidance from the Federal Reserve regarding monetary policy for 2025.

Peter Grant, Vice President and Senior Metal Strategist at Zaner Metals, stated: 'The market is still digesting the results of last week's (FOMC) meeting.'the Federal Open Market CommitteeCurrently, the more gradual interest rate path for 2025 is being considered, with a possible pause on rate cuts in January, and even maintaining a wait-and-see stance in March.

Despite the Federal Reserve's 25 basis point rate cut last week, it indicated that the number of rate cuts in 2025 would be reduced, leading to a significant drop in Gold prices to the lowest level since mid-November.

Zero-yield asset Gold typically benefits in low interest rate environments, but investors are readjusting their expectations for next year.

So far this year, driven by strong central bank Bids, geopolitical tensions, and the monetary easing policies of major central banks, Gold prices have soared by 27%, on track to achieve the best annual performance since 2010.

Short-term technical outlook for gold

Bednarik wrote that from a Technical Indicator perspective, Gold prices may continue to decline in the coming trading days. The daily chart shows that Gold is pressing against the bullish 100-daySimple Moving Average(SMA), trading near it for the first time since last February. Meanwhile, the 20-day moving average is losing directional strength above the current Gold price level, indicating that selling pressure remains.technical indicatorsDownward in the negative zone, although there is no strong momentum. If it breaks below 2600 USD/ounce recently, Gold may continue to decline.

Bednarik added that the 4-hour chart shows that the Gold price has fallen below the 100-period SMA and the 200-period SMA, currently struggling near the bearish 20-period SMA. Meanwhile, the Technical Indicator is penetrating the midpoint with a firm downward slope, although still close to neutral levels.

(Source: FXStreet)

Valeria Bednarik provides the latest important information on Gold prices.ResistanceAnd Resistance levels:

Support Levels: 2604.20 USD/ounce; 2591.70 USD/ounce; 2582.90 USD/ounce.

Resistance Levels: 2617.55 USD/ounce; 2632.00 USD/ounce; 2645.20 USD/ounce.