Gold Trade Setup – 16th Dec

Gold enters the week with a compelling A+ (3/3) bullish profile as macro conditions continue to favor defensive allocation and real-rate sensitivity remains front and center. With U.S. yields rolling over and risk appetite showing signs of fatigue, Gold is once again behaving like the market’s preferred hedge, absorbing dips and attracting incremental demand when volatility rises. Against a backdrop of major data and central-bank event risk, gold offers a clean expression of “lower-yields / higher-uncertainty” dynamics, where the upside can accelerate quickly if incoming prints reinforce the narrative. From a technical standpoint, price action remains constructive: gold is holding above a key structural pivot and continues to trade in a trend environment where pullbacks are being treated as opportunities rather than warning signs. That creates an attractive risk framework for traders and investors alike, defined invalidation below the pivot, and clearly mapped upside targets into prior highs. Gold Trade Setup: Pair / Asset Bias & Entries Stop / Invalidation Targets Why A+ (Fundamentals + Technicals + Sentiment/Positioning) Near-term catalysts (UK time) GOLD LONG – Bullish (buy dips / continuation). Buy 4,220 – 4,255 (pullback into support) or buy breakout acceptance >4,305. <4,190 daily close (break of key pivot/structure). T1: 4,365 T2: 4,381 – ATH zone Fundamentals: Falling US yields in your screenshot + risk-off undertone keeps real-yield sensitivity supportive. (Gold still being treated as a defensive/real-rate hedge in this tape.) (Reuters) Technicals: Bull structure above ~4,191 pivot, with upside focus toward 4,365+. (FXStreet) Sentiment: CFTC gold net length is elevated (trend-following demand); pullbacks into support are being bought rather than sold. (Investing.com) Tue 16 13:30: US Jobs + Retail Sales. (Scotiabank) Thu 18 13:30: US CPI (real-yield impulse).  Chart by TradingView – Gold Trade Setup – 16th Dec 2025 Conclusion In summary, gold remains an A+ long setup because fundamentals, technical structure, and sentiment/flows are aligned. Fundamentally, softer yield momentum and a market that is increasingly sensitive to growth and policy surprises keeps the bid under gold intact. Technically, the trend structure remains bullish while price holds above the key pivot zone, reinforcing the “buy dips / buy acceptance” playbook. From a sentiment and positioning perspective, gold continues to attract defensive flows, meaning any macro shock that pressures yields or equities can quickly translate into renewed upside extension. Execution is best framed as either (1) buying pullbacks into support with a tight, rules-based invalidation, or (2) buying breakout acceptance if price confirms strength above nearby resistance. The primary risks to this setup are a sustained upside surprise in U.S. inflation that forces yields sharply higher, or a decisive shift into durable risk-on conditions, both of which would typically show up first as a break below the pivot and a failure to reclaim it. Until those conditions emerge, the balance of probabilities continues to favor higher prices, with upside targets stacked toward the next major resistance band and the prior highs. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar Gold Trade Setups please visit our Commodities Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. 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