December 16th Gold Evening Thoughts

Gold experienced wide fluctuations at high levels, quickly rebounding to $4,335 after dipping to $4,272 during the day, ultimately closing at $4,302, basically flat. This volatility is driven by multiple factors: the rebound in U.S. job growth in November, but the unemployment rate rose to a four-year high of 4.6%, reinforcing expectations for interest rate cuts by the Federal Reserve, pushing the dollar to a two-month low, enhancing gold's appeal; the safe-haven demand from the Russia-Ukraine conflict also provided support for gold prices.

On the morning of the 17th in Asia, spot gold traded around $4,324, fluctuating within a narrow range. From a technical perspective, the hourly MACD shows a golden cross, and the RSI at 54.2 is cautious; the daily RSI has risen to 55.2, indicating increased buying power, with gold prices stabilizing above EMA7 and EMA30, while EMA120 is a key resistance level. The script provided by Yunjie during the day also has a good amount of space!

In terms of operations, if it holds around the support levels of $4,300 - $4,290, one can set up long positions, targeting $4,345; if $4,353 is not broken, it presents an excellent short position. Aggressive traders may consider entering short positions around $4,345 in advance. In a fluctuating market, excessive positioning is not recommended! A stable approach is advisable!