#美国民主党BlueVault U.S. December CPI just came out, and gold immediately started to "flip"—initially rallying, then pulling back. How should we interpret this market movement?

From a data perspective, the unadjusted CPI year-over-year at 2.7% and the monthly rate at 0.3% both meet market expectations, but the core CPI monthly increase is only 0.2%, below the expected 0.3%. What’s the result? The market begins to bet on a larger rate cut space for the Federal Reserve. However, there’s also a lot of chaotic information at play—Trump’s side mentioned Greenland acquisition again, the Fed chair nomination is still being debated, and EIA has raised oil price forecasts. Coupled with geopolitical uncertainties and continuous gold buying by global central banks, both bulls and bears find reasons to justify their positions. The result is that gold prices are caught in the middle of these forces, leading to increased volatility, with prices spiking briefly before pulling back.

What are the technical signals? On the 4-hour chart, gold is supported near the middle band of the Bollinger Bands, and the MACD histogram appears to be gaining momentum above the zero line; on the 1-hour chart, the KDJ indicator is turning upward, indicating early signs of a short-term rebound; on the 5-minute chart, the price range is narrowing, likely leading to a breakout in either direction. Overall, the technical setup still leans toward a bullish trend.

How to operate from a trading perspective?

**Bullish traders**: Consider going long if the price retraces to the 4580-4590 zone, with the first target at 4620. If that level is broken, then aim for 4640.

**Bearish traders**: If the price rebounds to 4640-4650 and faces resistance, try a small short position, initially targeting 4610. If it continues to break down, aim for 4600.

Key reminder: Keep a close eye on how market sentiment evolves after the data release, and set strict stop-loss levels. Don’t let the oscillations in gold price eat into your profits.

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