On Tuesday (December 5th), due to the overnight rise of the US dollar index, it regained the 104 mark, and spot gold continued to fall by 0.5%, narrowly holding the key support level of the 2010 US dollar, ultimately closing at 2019.42 US dollars.
On Tuesday, data from the United States was mixed, with a US ISM service industry PMI of 52.7, exceeding market expectations and previous data; The latest report from the US Bureau of Labor Statistics shows that JOLTS job vacancies decreased by nearly 600000 in October, to 8.733 million, far below the consensus of 9.35 million. The above data further drove the US dollar up, and the US dollar index regained the 104 mark overnight. Recently, despite the cooling of inflation in the US economy and mixed signals from the labor market and economic activity, Federal Reserve decision-makers have expressed on various occasions that they cannot rule out the possibility of further tightening policies. This slightly hawkish stance coincides with the release of key labor force data this week, and if the data matches strongly, it may greatly change market expectations. This also forces the bullish gold frenzy caused by the expected decrease in US dollar interest rates to calm down, and gold may still face technical adjustment pressure in the short term. But since the beginning of this year, we have observed that the rise of gold is driven by two wheels. Apart from the increasing investment frenzy, reserve purchases of gold by central banks around the world have gradually become a catalyst for the rise of gold. According to authoritative institutions, in the year ending in September, central banks around the world bought a net of 800 tons of gold, setting a record for the same period. A recent survey by the World Gold Council (WGC) showed that 24% of central banks plan to increase their gold reserves in the next 12 months. The active purchase of gold as a reserve by central banks of various countries cannot be underestimated in promoting the rise of gold.
On a technical level, after soaring to around $2132 on Monday, the price of gold was hit by a large amount of selling, causing it to fall to 0.618 for two consecutive trading days. After retreating to the level of $2009, it stabilized and slightly rebounded. At present, short-term strong support is around 2010-2000 US dollars. If the key support positions mentioned above are lost, gold will further retreat. From the weekly chart in the mid-term, RSI is in a positive mood, and the 55 week moving average is crossing the 100 week moving average, and both are rising, forming a golden cross. All of these indicate that the overall trend of gold prices is still trending upwards. To reverse the current bullish trend, gold must close below $1930.
