Gold Edges Higher on Technical Recovery Amid Thin Holiday Liquidity

Gold prices ticked higher in early trade, staging a modest rebound after front-month futures dropped 2.8% in the previous session. The recovery appears largely technical, following sharp overnight selling pressure.

Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade, noted that thinner liquidity due to holidays in major markets may amplify short-term volatility. Reduced participation often intensifies price swings, particularly after steep moves.

Despite the recent pullback, the broader outlook for gold remains largely unchanged. Ongoing diplomatic efforts in Eastern Europe and the Middle East have yet to produce concrete agreements, keeping geopolitical risks elevated and sustaining safe-haven demand.

Spot gold was last up 0.2% at $4,889.36 per ounce, reflecting cautious buying interest as markets reassess positioning.