During the Asian trading session on Tuesday (December 16), spot gold edged lower, currently trading around $4,287.11 per ounce. The precious metal faced pressure from profit-taking and short-term futures traders unwinding weak positions. Additionally, optimism surrounding Ukraine peace talks may weigh on safe-haven assets like gold. However, downside potential appears limited, and caution is warranted as volatility could rise before breaching previous highs.

Boston Fed President Collins stated on Monday that shifting inflation expectations led her to support the Fed’s recent rate cut decision. Collins noted, "I backed the FOMC’s 25-basis-point reduction in the federal funds rate target range last week, though it was a close call for me. Current data suggests a slight shift in risk balance, with significantly higher inflation appearing less likely."

Despite her unexpectedly dovish stance, Collins did not signal a new outlook for monetary policy. She emphasized, "Maintaining forward guidance consistent with the December 2024 statement—which preceded a pause in rate cuts—is crucial."

Market focus now turns to the U.S. Nonfarm Payrolls (NFP) report, which may offer further clues on the Fed’s rate trajectory. Weak labor market data could reinforce expectations of rate cuts and boost gold prices. Upcoming U.S. retail sales and PMI figures will also be closely watched.

Technically, gold closed with a doji on Monday, holding above the 5-day moving average. The 4-hour chart shows consolidation near the $4,280–$4,300 support zone; maintaining levels above this range supports a bullish bias.

Daily charts reveal repeated long upper wicks near $4,350–$4,353, indicating strong resistance. Key support lies at the 5-day and 10-day moving averages ($4,285 and $4,243, respectively). A break below $4,280 could trigger a move toward $4,240.

Despite the minor dip, the 4-hour chart retains a constructive outlook. Prices remain well-supported above the 100-day EMA, with Bollinger Bands expanding and the 14-day RSI hovering near 60.0, reflecting bullish momentum.

Immediate resistance stands at $4,350 (December 15 high). A breakout could target $4,365 (upper Bollinger Band) and the all-time high of $4,381. On the downside, initial support is at $4,285 (December 15 low), followed by $4,257 (December 12 low). Sustained selling pressure may push gold toward the 100-day EMA at $4,210.