Gold price strategy for Monday: Buy the dip

Gold price summary: The market generally expects the Federal Reserve to cut interest rates in December, so gold prices are generally expected to rise slightly tomorrow (Monday, December 1).

First support level: $4125

Key support level: $4170-4175

First resistance level: $4245

Important Resistance Level: $4,300

Gold prices rose this week (up 3.80%), mainly driven by dovish signals from Federal Reserve Governor Waller and New York Fed President Williams, which boosted market confidence in a December interest rate cut.

However, given the sharp short-term rise in gold prices, investors should remain cautious. Some may seek to take profits after Monday’s open, which could lead to a temporary decline in gold prices.

In addition, although it is less likely, the manufacturing purchasing managers index (PMI) data released by the US Institute for Supply Management (ISM) on Monday may be unexpectedly strong, temporarily curbing market interest rate cut expectations and putting downward pressure on gold prices.

Trading strategy reference for next Monday:

Speculative strategy: If the price of gold falls to the support range of $4195-4205 and stabilizes after Monday’s opening, it is recommended to open a long-term buying position. Buy the dip and place a stop-loss order below $4,150.

Conservative strategy: If the gold price falls to the support range of $4170-4175 and stabilizes after the opening on Monday, it is recommended to open a long-term buying position and set a stop loss order below $4150.

Summary: The main factor affecting the direction of the gold market tomorrow is still the market’s expectation for the Federal Reserve to cut interest rates, and the overall market trend is improving.

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