The Gift of the Magi is a short story written by William Sydney Porter, who went by the pen name of O. Henry. It is a story of love, difficult economic times, and the true meaning of the gift-giving of Christmas. It is believed to have been written in a tavern in New York City in 1905.
While the setting is not overtly revealed in the story itself, there are clues that suggest it takes place in New York City on Christmas Eve during the Early Twentieth Century. The fact that it is December 24th is stated at the start of the short story. The prices of the items in the story, and because it was written in 1905, reveals it takes place in the early 1900s. As for the location, it can be inferred that the story takes place in New York City when Della Dillingham suggests that her husband will think that she looks like a "Coney Island choir girl."
Setting of the Story: Christmas Eve, 1905 in New York City.
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