Key Resistance at 2630 Ahead of FOMC Minutes

l’altro ieri

Market Review and Outlook:
As anticipated in my previous post, gold has been trading within a range, primarily between the 2600 and 2630 levels. Although there was a brief breakout above 2630, the price ultimately formed a long upper wick on the daily candle, indicating strong resistance at this level. This reinforces the idea that 2630 remains a crucial resistance zone for the short term.

With the release of the Federal Reserve’s November meeting minutes in about an hour, we can expect the potential for gold to find a new directional bias. From my perspective, the expectations for further rate cuts have diminished significantly, and the overall outlook for the U.S. economy remains relatively stable. With a new president in office, it is unlikely that the U.S. economy will face significant challenges in the near term. Therefore, there is a high probability that the minutes could turn out to be bearish for gold.

Trading Strategy:
Given the current market conditions and the upcoming event, my recommendation is to continue focusing on shorting gold:

Short Position: If gold rises above 2630 again, consider shorting.
Resistance Target: Watch for further downside if 2630 holds as resistance.
Disclaimer:
This analysis is for informational purposes only and does not constitute financial advice. Always ensure strict risk management and avoid excessive leverage when trading.