Gold (XAU/USD) extended its recovery on Friday during a thin-liquidity session, with markets in Japan and China closed for New Year holidays. The precious metal gained around 1.75% on the day, climbing back toward the $4,400 zone after finding solid demand near $4,274 earlier in the week.
The rebound reflects a combination of easing US interest rate expectations and renewed geopolitical tensions, both of which have reinforced safe-haven flows into precious metals in recent sessions.
On the geopolitical front, Russia announced a revision of its position in peace talks with Ukraine following an alleged drone attack on one of President Vladimir Putin’s residences. At the same time, US President Donald Trump adopted a more confrontational tone toward Iran, adding another layer of uncertainty to global markets.
Technical analysis: gold faces key resistance near $4,400–$4,445
On the 4-hour chart, XAU/USD is trading around $4,395 after rebounding from the area between the 61.8% and 78.2% Fibonacci retracement levels of the December rally. This zone is a typical correction target, although the bearish engulfing pattern printed on Monday’s daily chart continues to serve as a cautionary signal for bullish traders.
Intraday technical indicators remain constructive. The 4-hour Moving Average Convergence Divergence (MACD) has turned higher, pointing to improving upside momentum, while the Relative Strength Index (RSI) stands at 52.85, a neutral reading that slightly favors the bullish side.
On the upside, immediate resistance is located at the December 30 high near $4,400. A sustained break above this level would expose the December 23 and 24 lows around the $4,445 area, followed by the previously broken trendline, now acting as resistance near $4,500. On the downside, initial support is seen at the $4,305 intraday level, ahead of the December 31 low at $4,274. A deeper pullback could open the door toward early December lows, near $4,170.
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