Institution: The thin liquidity during the Christmas holiday may amplify the current rise in gold

Analyst Justin Low from the U.S. financial website Investinglive stated that as the Christmas holiday approaches, gold and silver traders have not slowed down. The precious metals continued to rise in the new week, with spot gold now soaring to a new record high above $4,400 per ounce.

If gold firmly stands above $4,400, it will open up greater upward potential. However, the headwinds facing gold may not truly manifest until the second half of 2026. Even so, we cannot rule out the possibility that market participants may price in this expectation ahead of time. The key challenge to the narrative of rising gold prices lies in "major central banks gradually shifting from rate cuts and mentioning rate hikes again in the future."

This is something to be cautious about. But at least for now, gold buyers will continue to maintain a bullish momentum. However, thin liquidity may amplify the current gains, especially with the Christmas and New Year holidays approaching, leading to a quieter market. Therefore, even though seasonal patterns show that December and January have historically been good months for gold over the past twenty years, liquidity factors must also be considered when looking forward to further upward trends. (Jin Shi)