Institutions: Thin liquidity during the Christmas holidays may amplify current gold price gains.

Justin Low, an analyst at the US financial website Investinglive, said that with the Christmas holidays approaching, gold and silver traders have not slowed down. Precious metals continued to rise in the new week, with spot gold now surging to a new record high above $4,400 per ounce. If gold can clearly hold above $4,400, it will open up more upside potential. However, the headwinds facing gold may not truly materialize until the second half of 2026. Even so, the possibility that market participants have already priced in this expectation cannot be ruled out. The key challenge to the gold rally narrative lies in the fact that "major central banks will gradually shift from interest rate cuts and reiterate the possibility of rate hikes in the future." This is something to be wary of. But at least for now, gold buyers will continue to maintain a bullish momentum. However, thin liquidity could amplify the current gains, especially with the Christmas and New Year holidays approaching and market trading becoming increasingly thin. Therefore, even though seasonal patterns show that December and January have been better months for gold over the past two decades, liquidity factors should be taken into account when looking for further gains. (Jinshi)