Gold Market Analysis: On December 4, gold rebounded along the 5-day moving average but faced resistance near 4228 as anticipated, later retreating to 4195. The weaker-than-expected ADP employment data in the evening triggered another rally, pushing prices to 4241 before settling back near 4195. The daily chart closed with a bearish doji star, reflecting market hesitation.
Yesterday’s trading pattern showed limited upward momentum during the day, failing to breach Tuesday’s high, indicating persistent caution after the prior bearish candle. Despite the ADP-driven rally to 4240, bullish enthusiasm appears subdued, suggesting potential short-term technical corrections. Key support now lies at the 10-day MA (4170), while resistance remains at 4230-40.
Hourly charts suggest sideways consolidation, with trendline resistance converging with the upper range boundary near 4230. A breakdown below 4190-80 could signal further downside toward 4170.
Trading Strategy: Adopt a range-bound approach with short-term scalping. Consider short positions at 4225-30 (adding at 4235-37 if needed), with stops above 4240. Initial targets are 4200 (partial exit with breakeven stops), followed by 4190-85 and 4170. For longs, await a pullback to 4175-70 support. Adjustments will follow real-time market conditions.
Disclaimer: This analysis is for reference only and does not constitute investment advice. Investors should assess risks independently.
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