Gold Prices Hover Near $4,340 as Safe-Haven Demand Offsets Modest Dollar Strength
New York, December 18, 2025 – Gold prices showed resilience in the past 24 hours, trading steadily around $4,335-$4,340 per ounce amid renewed safe-haven buying driven by escalating geopolitical tensions and signs of a cooling U.S. labor market. The precious metal experienced minor fluctuations, with a slight net decline of about 0.08% over the period, as a modest uptick in the U.S. dollar capped gains. Spot gold was quoted near $4,335 per ounce in late New York trading on December 17, reflecting ongoing investor caution ahead of key U.S. inflation data due later on December 18.
The subtle pullback follows a period of consolidation near recent highs, with gold remaining supported by expectations for further Federal Reserve rate cuts and persistent global uncertainties. Market participants are closely monitoring upcoming consumer price index figures, which could influence the Fed’s policy trajectory in early 2026.
Summary Table
| Key Event/Data Point | Description | Market Impact |
|---|---|---|
| Spot Gold Price (Dec 17 close/late) | ~$4,334-$4,339/oz | Minor decline of ~0.08%; held above $4,330 support. |
| 24-Hour Change | -3.30 to +3.32 USD (~ -0.08%) | Limited volatility; safe-haven bids offset USD pressure. |
| High/Low (past 24 hrs) | $4,343.90 / $4,332.40 | Tight range; consolidation near highs. |
| Geopolitical Developments | U.S. blockade on Venezuelan oil; Putin signals no concessions on Ukraine. | Boosted safe-haven demand; supported prices. |
| U.S. Labor Indicators | Unemployment at 4.6%; mixed payrolls data. | Reinforced Fed easing bets; positive for gold. |
| Upcoming Data | U.S. November CPI release on Dec 18. | Potential volatility driver; focus on inflation trajectory. |
| Silver Performance | Surged to record highs above $66/oz. | Spillover safe-haven flows; highlighted precious metals strength. |
Market Update
Over the past 24 hours, spot gold prices traded in a narrow range, dipping slightly to around $4,332 before recovering toward $4,339 per ounce. Live quotes from major platforms indicated a bid/ask spread of approximately $4,334.00/$4,336.00 in evening New York sessions on December 17, with a net 24-hour change of roughly -0.08% or -$3.30 per ounce. Gold futures for January 2026 delivery on the Comex closed higher at around $4,368.70, posting a modest gain of 0.12%.
Trading volumes remained elevated on platforms like the Comex, underscoring sustained interest amid broader precious metals rallies. Silver, for instance, outperformed with surges to new records above $66 per ounce, driven by similar macro forces. The gold-silver ratio narrowed slightly, reflecting stronger industrial and safe-haven demand dynamics in silver. Platinum also advanced, reaching multi-year highs.
Overall, the 24-hour period saw gold consolidate gains from earlier in the week, holding firm above key technical supports near $4,300-$4,330 despite intermittent dollar firmness.
Drivers & Causes
Gold’s performance in the past day was shaped by a mix of supportive and restraining factors. Primary drivers included heightened geopolitical risks, which resurfaced as safe-haven catalysts. U.S. President Donald Trump’s order for a “total and complete” blockade of sanctioned Venezuelan oil tankers, combined with a U.S. military buildup, reignited concerns over energy supply disruptions. Simultaneously, Russian President Vladimir Putin’s firm stance against easing territorial demands in Ukraine dampened optimism around potential peace deals, prompting investors to seek refuge in non-yielding assets like gold.
On the economic front, recent U.S. labor market data reinforced perceptions of cooling conditions. Unemployment climbed to 4.6%—the highest since September 2021—while November nonfarm payrolls added 64,000 jobs (above expectations but offset by downward revisions to prior months due to ongoing government shutdown effects). Flat retail sales in October further underscored softening consumer demand, bolstering bets on additional Fed rate cuts to support growth.
These developments contrasted with a slight dollar recovery, which exerted downward pressure on gold by increasing its cost for non-U.S. holders. However, the greenback’s gains were muted, with the U.S. Dollar Index hovering near recent levels without significant breakthroughs.
Broader demand trends continued to underpin prices, including robust central bank purchases and ETF inflows. Speculative positioning remained elevated, with CFTC data showing net longs near record levels. China’s economic slowdown—evident in weak industrial output and retail sales—added to global uncertainty, indirectly supporting gold as a hedge.
Central Bank Policy Analysis
Market expectations for U.S. monetary policy played a central role in the past 24 hours’ trading. Dovish signals from Federal Reserve officials, including comments from Governor Christopher Waller on potential rate reductions amid stalled job growth, sustained bets for easing. Traders are pricing in a high probability of the Fed holding rates steady in January but anticipating further cuts in 2026, potentially totaling 50-75 basis points depending on incoming data.
The upcoming November CPI release on December 18 is pivotal, as it represents the first major inflation readout in months amid data delays from the prolonged government shutdown. Analysts anticipate core measures to remain elevated but trending lower, which could solidify the path for accommodative policy.
This environment favors gold, as lower real yields enhance its appeal relative to interest-bearing assets. However, any upside surprises in inflation could temporarily strengthen the dollar and pressure prices.
Implications
In the short term, gold investors should prepare for increased volatility around the CPI data. A softer-than-expected print could propel prices toward recent highs near $4,380, while hotter figures might trigger a pullback to $4,300 support. Portfolio allocations to gold remain recommended as a hedge against persistent uncertainties, including geopolitical flare-ups and labor market fragility.
For central banks and institutional investors, the current backdrop reinforces gold’s strategic role in reserve diversification. Ongoing purchases—projected to exceed 900 tons annually—provide a structural floor under prices.
Longer-term, analysts see gold averaging above $4,500 in 2026, driven by de-dollarization trends, tokenized gold demand (approaching $4 billion on-chain), and potential fiscal expansion. Risks include a sharper U.S. economic rebound or resolved geopolitical tensions, which could diminish safe-haven flows. Nonetheless, low U.S. household ownership and strong emerging market demand suggest upside potential remains intact.
Global Context
International markets reflected similar caution. Asian sessions saw gold supported by regional economic concerns, particularly China’s subdued growth indicators, which revived fears over the second-largest economy. European trading mirrored this, with precious metals gaining amid risk-off sentiment in equities.
In emerging markets, physical demand held steady despite high prices, with India reporting investment-led support. Tokenized and gold-backed stablecoins continued to attract flows, signaling broadening accessibility.
Overall, the past 24 hours underscore gold’s entrenched position as a barometer of global risk, with fundamentals aligned for continued strength barring major positive resolutions.