Gold prices still do not have the conditions to break through

2024-12-09 1220

In short-term battles, one must start with one hand and strike with the sword. In this market, the sword shines brightly and instantly gains an advantage. One must draw the sword and cut the opponent under the horse.

Wave bands require the support of underlying logic and the prediction of the main force's strategy and tactics. They rely on deep thinking, a clear understanding of the overall situation, and the momentum to win. Only through continuous planning and observation can they seize the opportunity to layout and make the situation develop in a favorable direction for themselves.

Short term strategy relies solely on tactics, execution, and timeliness. And the frequency band must rely on the overall trend and strong support from the underlying logic in order to be completed. In the trading process, these are completely two concepts, so every trader must position their cognition, ability, level, and rank. Clear positioning is essential to avoid confusion.

Gold has still not been able to break out of the range, and non farm sectors are still operating within the range. In the short term, it is still expected to fluctuate within the range. This viewpoint has been emphasized multiple times recently, and many people are betting on breaking through with the help of data trends, but in reality, it is all in vain. The essence of the current volatility is that there is no news in the market pushing the market out of the range, which is also the intention of the main force. This is the key, coupled with the approaching Christmas abroad, the market trading is light, and the main force has no intention of stirring up the market.

Although the non farm payroll data is bearish, the gold price rebounded again around 2624 and entered the range of fluctuations. In the early morning of the day, gold rose and fell to around 2627 before pulling up again to around 2650, with a very fast pace. From that perspective, gold is currently expected to maintain range bound volatility. The support area below the interval is 2620-2610, and the resistance area above is 2650-2660. In the short term, it still operates within this range.

The key turning point of focus is the impact of the Federal Reserve's interest rate decision on December 19th and the policy changes before and after Trump's inauguration next month on the market. Apart from that, there is no major news that can stir up the market in the short term. The possibility of further escalation of the geopolitical situation is also unlikely, and even if there is a sudden escalation of war, it will come and go quickly, which cannot provide effective support for the market at certain stages. So, fundamentally, the focus is still on oscillation correction.

After the early morning surge in the Asian gold market, it is not advisable to directly chase higher prices. Essentially, it is still volatile. If the European market cannot break through the high point suppression of the 2657-2658 line last week, short-term fluctuations will retreat again. Focus on the support in the 2627-2625 area below, with lower support located in the 2620-2615 area.

In terms of operation, treat short-term fast in and fast out within the day, and high short selling and low buying and long selling within the range. The short-term main direction is still bullish, with buying more on dips. So, within the range, the main buy is long, the auxiliary sell is short, and short-term is sufficient.

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