December 3: In the previous trading session on Tuesday (December 2), international gold prices rebounded from lows to close slightly lower, settling above the 5- and 10-day moving averages. Compared to Monday’s inverted hammer candlestick pattern, the pullback suggests a bearish exhaustion and a potential bullish reversal. Therefore, the outlook remains favorable for buying on dips.
In detail, gold opened at $4,231.36 per ounce in the Asian session, briefly hitting an intraday high of $4,235.97 before retreating steadily. It touched $4,181 during early European trading, then rebounded to near the opening price by early U.S. trading. However, resistance triggered another selloff, pushing gold to an intraday low of $4,163.81 before another recovery. The session closed at $4,205.63, marking a $72.16 range and a $25.73 (0.61%) decline.
The drop was driven by technical resistance and profit-taking amid bearish expectations mirroring the November 13 pattern. However, dip-buying and reports that President Trump favors Kevin Hassett—a perceived dovish candidate—for the next Fed Chair bolstered expectations of looser monetary policy, fueling gold’s rebound.
Looking ahead to Wednesday (December 3), gold opened higher, extending its late-session recovery momentum. While short-term profit-taking and bear traps may trigger corrections, the broader uptrend—supported by a multi-year bullish trajectory—remains intact.
Today’s U.S. November ADP employment data and Friday’s core PCE inflation reading are key. Weak ADP figures and subdued PCE inflation could reinforce rate-cut expectations, supporting gold. Even if data surprises positively, volatility is likely to dominate. Conversely, weaker-than-expected data may amplify 2024 rate-cut bets, pressuring the dollar and lifting gold. This week’s strategy favors bullish positions with secondary focus on range-bound moves.
Technically, the dollar index remains below its 200-day moving average resistance, with weekly and monthly charts also signaling weakness. Meanwhile, the 10-year Treasury yield’s prolonged consolidation and bearish divergence suggest a downtrend—bullish for gold.
Long-term drivers remain robust: Central banks added 53 tons of gold in October (up 36% monthly), marking the strongest demand since early 2025. Geopolitical tensions further underpin gold’s safe-haven appeal.
In summary, despite short-term profit-taking pressure, gold’s bullish case is reinforced by Fed rate-cut expectations, strong central bank demand, bearish Treasury yields, a weaker dollar, and geopolitical risks. With low rates and economic uncertainty, gold is poised for another bull run. Corrections offer buying opportunities—history shows dips during easing cycles often precede major rallies. The $5,000/oz target for next year remains plausible.
**Technical Levels**: - *Gold*: Support at $4,195/$4,180; resistance at $4,220/$4,245. - *Silver*: Support at $58.10/$57.70; resistance at $59.00/$59.70.
(Note: Real-time trading guidance is provided to premium clients.)
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