Gold Strategy - Market Risk Appetite on the Rise, Gold Short-Term Weakness
Fundamental Analysis: Last week, with Trump's confirmation of winning the U.S. presidential election, political uncertainty decreased, and the expectation of Trump's efforts to boost the stock market led to a significant increase in market risk appetite. Risk assets, such as U.S. stocks and cryptocurrencies, saw a surge in capital inflow, indirectly impacting safe-haven assets like precious metals. Gold prices fell below the $2,700 level. Although the Federal Reserve cut interest rates by 25 basis points as expected last Friday, and Chairman Powell's statement leaned dovish, the preliminary reading of the U.S. November Michigan Consumer Confidence Index rose from 70.5 to 73, showing a recovery in consumer confidence. The market is closely watching for any further pro-economic policies from Trump, which may lead to a continued correction in gold prices. Technical Analysis: Trading Recommendation: Consider a light short position in gold at 2685, targeting 2652, with a stop-loss at 2705. Support Level: 2652 Resistance Level: 2704 Disclaimer: This content is for reference only, does not represent the platform’s stance, and encourages individuals to stick to their strategy and manage risks accordingly.
On the hourly chart, after a sharp decline, gold rebounded but faced resistance at the 65 MA, gradually losing upward momentum. This suggests heavy selling pressure above. With the double moving averages still trending downward, aggressive traders may consider entering short positions at the moving average resistance, while conservative traders may wait for another test of the 2704 level before deciding.
