📊 Gold Forecast: Vertical Rally Raises Short-Term Risk

Gold (XAUUSD) is trading near record highs, as a powerful bullish move sends prices sharply higher. However, analysts warn that the market’s near-vertical rise could increase the risk of a short-term pullback if momentum cools.

• Gold has broken above the $4,381 level, turning former resistance into key support.

• Prices are now trading near the $4,530 zone, signaling strong bullish momentum.

• The rally is significantly overextended versus the 52-week average, raising caution flags.

• A short-term top could form in early January if buying pressure slows.

• Central bank demand, Fed rate-cut expectations, and geopolitical risks remain key drivers.

“A vertical move often reflects strong conviction, but such rallies can invite pauses or pullbacks — watch key support zones closely.

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