Institutions: Thin liquidity during the Christmas holiday could amplify gold's current gains

As Christmas approaches, gold and silver traders are not slowing down, according to Justin Low, analyst at Investinglive, a US financial website. Precious metals have continued to shoot higher in the new week, with spot gold now surging to a new record high above $4,400 an ounce. If gold firmly stands above $4,400, it will open up more upside space. But the headwinds facing gold may not really become apparent until the second half of 2026. Even so, the possibility that market participants digested this expectation earlier cannot be ruled out. The key challenge to the gold rally narrative is that "major central banks will gradually shift from cutting interest rates and revisit raising interest rates in the future". This is cause for concern. But at least for now, gold buyers will continue to maintain their bullish momentum. However, the current gains are likely to be amplified by thin liquidity, especially as the Christmas and New Year holidays approach and markets become less traded. Therefore, even if seasonal patterns show that December and January have been the best months for gold over the past two decades, liquidity factors need to be taken into account when looking ahead to further gains.