Gold prices stabilize at high levels, pay attention to employment data

Market Review: Gold prices fluctuate as geopolitical tensions ease and safe-haven demand weakens 📉 Spot gold prices fluctuated sharply at the beginning of the week. Gold prices rose on Monday (December 15), approaching the psychological mark of $4,350 per ounce, approaching the highest level in more than seven weeks hit last Friday. However, those gains soon fell back as safe-haven demand diminished, with prices eventually settling at $4,304.91 an ounce, up slightly by about 0.1% on the day. Gold prices resumed their gains during the U.S. trading session on Tuesday (December 16) and are currently trading around $4,328.64 per ounce.

The main factor behind the decline in gold prices is signs of easing geopolitical tensions. Demand for safe-haven assets fell sharply as U.S. officials made progress in talks with Ukrainian President Volodymyr Zelensky on ending the war. At the same time, the market continues to analyze the outlook for the Federal Reserve’s monetary policy, and fluctuations in the U.S. dollar exchange rate also affect gold prices. 💰

Technical analysis: The struggle between buyers and sellers intensifies, forming a strong fund-raising pattern. ⚖️Daily chart: Yesterday, the gold price first tested the 4300 mark, and then rose strongly to the 4290 area. It hit a high of 4350 and then fell quickly, closing at a low of 4285. The daily chart close is a “shooting star” candle with a long upper shadow. The pattern signals strong resistance above as buyers face intense selling pressure after attempting to break above higher levels. 📊

Main price levels:

Resistance levels: 4350 (yesterday’s high), 4370-4380 (previous high) 🚀

Support: 4310-4290 (short-term trading range), 4270-4250 (strong support area) 🛡️

Four-hour chart: While price remains above the 50-day moving average and short-term support remains in place, price action shows indecision on the part of buyers and sellers. After experiencing a sharp decline accompanied by a large white candlestick in the early stage, the subsequent rebound accompanied by a small white candlestick was limited, and the recovery process was slow, indicating that the market may need time to consolidate before determining its direction. Moreover, the price has repeatedly tested the 4335-4345 range to no avail, indicating that the selling pressure in this area is relatively high. 📉

Market focus turns to U.S. employment data 🎯 Global traders are paying close attention to the upcoming release of key U.S. employment data. The data will reveal more about the state of the labor market and provide important information for assessing the future path of the Fed’s monetary policy. If the data reinforces expectations of a rate cut, gold prices may rise; but if it shows the economy is still strong, the date of the rate cut may be postponed, which will put pressure on gold prices. 💡

Trading strategy recommendations ✨ Based on the analysis of fundamental and technical factors, gold may maintain a rising accumulation pattern in the short term, waiting for fundamental data to break this balance.

Short-term trading strategy: mainly buying on lows, supplemented by selling on highs.

Resistance zone: 4350-4370 US dollars / ounce. If the price rebounds to this area and encounters resistance, it is recommended to open a small selling position with a target of $4310-4290. ⬇️

Lower support area: $4310-4290/oz. If the price falls to this area and finds support, it is recommended to open a buying position with a target of 4335-4350. ⬆️

Key Turning Point: 4335 is the key support/resistance level for the day. If the price stabilizes above this level, a retest of the 4345-4350 area is likely; if it continues to face resistance, a test of the support levels at 4270-4250 is likely. ⚡

Risk warning: If the price breaks through strongly and stands above the 4350 level, there may be an upward opportunity, and the price may try to touch the previous high near 4380. On the other hand, if the price actually falls below the 4270-4280 support zone, the short-term correction may expand. ⚠️

Investors should pay close attention to changes in market sentiment before and after the release of U.S. employment data, carefully control positions, and effectively manage risks. 🔍

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