Chapter 35 Gold Prices Focus on the Correction, Oscillating at High Levels（11.30）
Fundamentals
During the Asian session on Thursday (November 30), spot gold fluctuated upwards and is currently trading around 2045. Yesterday, gold prices generally fluctuated in the range of $2035-$2052 as expected. Both bulls and bears trading in this range had opportunities to make profits up to $10. Here we stress again that traders should not stop loss at support and resistance levels. U.S. GDP data was revised upward largely overnight, exceeding market expectations, and the core PCE data was revised downward more than expected. The probability of a soft landing is rising sharply. At the same time, several Fed officials who have voting rights next year hinted at no urgency to raise interest rates again. Overall, yesterday's information was mixed, and the dollar was relatively stable. The pullback in gold prices after rising was mainly because bulls took profits and exited the market, and bears entered the market at key resistance levels. Generally speaking, key resistance and support levels cannot easily be broken. In fact, your judgment role is small in trading, and what really makes you profitable is your execution and patience. Good deals are waiting to be made, but 90% of people have a hard time doing it. Habits that make you comfortable are generally not conducive to trading. Do more things that you don't like but should do, and after a long time, you can get unexpected cultivation and grades.
Data: The US annualized QoQ GDP in the third quarter was revised upwards to 5.2%, which is the largest increase in nearly two years, compared with the preliminary value released was 4.9%. The core PCE price index was revised down to 2.3%, compared with the expected 2.4%. The PCE price index was revised down to 2.3%, compared with the expected 2.4%.
Speeches: The president of the Atlanta Fed and the president of the Cleveland Fed, a hawkish official, both support a stay on hold in December. Another senior official, the Richmond Fed president, believes that stubborn inflation risks mean that the option of raising interest rates in the future should be retained. At the same time, he said that the market expects the Fed to cut rates four times next year, which may be based on the expectation of a soft landing, and he hopes that the market is right.
Today, investors need to pay attention to the US initial jobless claims, the Chicago PMI for November, and the existing home sales index for October.
Technical Analysis
Last trading day, gold prices fluctuated at high levels, opening high to around 2052. Subsequently, the Asian session fell to a low near 2035, and the European and American markets rose again to around 2050. Finally, the price closed a small bull candle with a long shadow. There is still a bearish divergence in the market. If gold closes a bear candle today, perhaps a short-term correction will be necessary. For the next two days, the trend may also be more inclined to a weak pullback, but it will not fall sharply. The support below could still see the initial support of 2032, and if it breaks, the support below around 2018 can be expected. It is unlikely that the price will fall to 2000 during the week. As for the above, it still depends on whether 2052 can break through smoothly and effectively. If it breaks, the upper resistance can be seen in the 2065-2072 area. Today, investors can trade in the range of 2028-2052, where you can mainly buy low and sell high and focus on going short at high.
Trading Recommendations
Trading Direction: Short
Entry Price: 2050
Target Price: 2018
Stop Loss: 2055
Support: 2032.000/2018.000
Resistance: 2050.000/2065.000
