Gold prices cooled off a bit in Asia on Monday. After smashing through another all-time high near $4,550, traders decided to pocket some profits. Not a huge surprise, honestly—everyone wants to lock in gains after a run like that. Plus, the market felt thin with the holidays, and the US dollar got a little stronger, which always puts a bit of pressure on gold since it makes it pricier for folks using other currencies.
Even so, the overall picture for gold appears solid despite this brief decline. This feels more like a respite than a genuine threat to the rally because prices are comfortably above key support levels. After weeks of climbing, traders just seem to be catching their breath.
Gold’s monster year keeps bulls in charge
Gold prices have rocketed up about 70% in 2025—its best year in decades. A big part of the story is traders looking ahead, expecting the US Federal Reserve to cut interest rates next year. Lower rates make gold more appealing since it doesn’t pay interest, and that gap between gold and other assets shrinks when rates drop
Meanwhile, individuals want safe havens as geopolitical drama and economic uncertainty play out. As a result, these risks provide some floor to gold even as prices remain range-bound with holiday trading activity.
Short-term signals flash caution
Technically, gold prices remain in a strong uptrend — but perhaps it’s beginning to slow down ever so slightly. At the moment, gold is overbought, as evidenced by the RSI, which has exceeded 70. Such a reading tends to produce some consolidation or a modest pullback ahead of the next move higher.
Currently, support is around $4,430, and resistance is around $4,550. While a few of those traders are occasionally booking profits, the longer-term picture sure looks fine as gold trades above those critical levels.
