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Fundamentals

During the Asian session on Thursday (November 23), spot gold fluctuated in a narrow range, and is currently trading near 1992. Yesterday, gold prices surged and fell, failing to break through the weekly highs as well as the highs set at the end of October. It closed with a black body, mainly by the U.S. Index (USDX) overshooting after a continuous technical rebound. Coupled with the fact that the announced U.S. consumer long and short-term inflation expectations outperform the expected rebound, the market tightening expectations are warming, and U.S. Treasury yields are pulling up, all these factors once again promote the USDX fundamentals rebound, and gold prices were pull back are under pressure. From the current point of view, the status quo of high U.S. Treasury yields remains unchang and will continue for a long time, which for the price of gold, the adjustment will be made in the medium term. Judging from the technical pattern, if it fails to effectively break through the 2010 level in the short term, then there will be an M-shaped double-top pattern. However, based on the long-term trend, the sharp retracement of gold prices is again developing opportunities for allocation. It may develop an upward flag-shaped breakout pattern, but it still needs to fluctuate downward at least once for now before it breaks out to the upside onto a higher level. The more you trade in a relaxed environment the more you can gain. It's basically hard to trade well under fear, which is why we make trading plans in the first place. With guidelines for execution, you will be in a relatively calm state, making the money you know you can, and losses are part of trading and are the most controllable factor! When there are favorable trends, you can focus on the trading; when there are no such trends, why you get is your life: Give and take, less is more!

Data: U.S. initial jobless claims for the week to November 18 came in at 209,000, a new low since the week of October 14, compared with the expected figure of 226,000 and the previous figure of 231,000. The number of jobless claims renewed for the week to November 11 was 1.84 million, compared with the expected figure of 1.875 million and the previous figure of 1.865 million. The University of Michigan released a survey, and the final value of U.S. consumers' inflation expectations for the next year in November was 4.5%, higher than the flat initial estimate of 4.4%.

Today's Focus: There is no heavy data, and it is recommended to digest the reserves.

Technical Analysis

Yesterday, the price of gold surged and fell back, stopping at the weekly high of around 2007, and once retraced to the 1986 level. For investors who go short at the highs, they might be able to make a decent profit. It can be said that yesterday's trend is easier to follow, after all, the daily double top is very obvious. In the short term, if there is no big push, it is difficult to break through at once. It will also make a few attempts to break through. The best opportunity is to make a few stop-losses with small positions in the short term before going short. If it fluctuates for a longer period, it will be no longer appropriate to go short against the trend. From the larger cycle of gold prices, perhaps it will form a flag-shaped upward breakout pattern and is currently fluctuating in a large range at this stage. The 1-hour MACD fell into the oversold zone and has a pattern of forming a golden cross, which may lead to an hourly rebound. However, the 4-hour MACD formed a death cross at the high level, and the daily MACD is also sticking at the high level, which destined that the height of the hourly rebound is limited, with resistance temporarily at the upper 2007-2009 range, and support at 1987 of the 5-day SMA. Today's reference trading range is 1987-2007. For the aggressive, you can buy low and sell high in this range.

Trading Recommendations

Trading direction: Short

Entry price: 2007

Target price: 1987

Stop loss: 2012

Support: 1987.000, 1968.000

Resistance: 2009.000, 2024.000