Technical analysis by dgfacpe about Symbol PAXG: Sell recommendation (12/2/2025)

On Tuesday (December 2nd) in early European trading, gold fell approximately 0.92%, trading around $4192. After hitting a six-week high ($4264.43) the previous day, gold prices dipped slightly in early Asian trading on Tuesday, briefly falling to near the $4200 level as investors took profits and awaited key economic data for clues about interest rate cuts. However, gold prices quickly found support on dips. Analysts pointed out that recent geopolitical developments, coupled with rising expectations of a shift towards looser US monetary policy, suggest that gold is likely to remain resilient. Gold has performed strongly this year, benefiting from its role as a traditional safe-haven asset amid political turmoil and economic uncertainty. Investors are closely watching market dynamics, especially as the market digests the latest developments in the Fed's policy path and ongoing geopolitical tensions. The market widely expects the Fed to cut interest rates at its December 10th meeting, with current market pricing indicating an 87% probability of a 25 basis point cut. Analysts point out that market focus has shifted from corporate earnings reports to the Federal Reserve's policy direction. While the monetary policy outlook is easing, the pace of market gains may slow. Meanwhile, US Treasury yields rose due to hawkish comments from the Bank of Japan governor, putting pressure on the real estate and utilities sectors, seen as alternatives to bonds. Furthermore, market speculation that the next Fed governor may adopt a more dovish stance further boosted market sentiment. At the same time, the dollar index fell to a two-week low, making dollar-denominated gold cheaper for holders of other currencies, thus increasing demand. Investors will be watching several key US economic data releases this week, including Wednesday's November ADP employment report and the September Personal Consumption Expenditures (PCE) price index, which has been postponed to Friday. The latter is a key indicator for the Fed to measure inflation. There are no major data releases today; however, attention should be paid to Fed Governor Bowman's testimony before the House Financial Services Committee. December 2nd Gold Price Analysis: Gold continued its downward trend today, providing an opportunity for short positions near 4225. Gold prices have broken below the previous consolidation range on the 4-hour chart. The price action continues to be pressured by short-term moving averages, maintaining a downward trend. In the short term, watch for a potential small rebound followed by a second decline, focusing on the support level around 4170. On the 4-hour chart, the price action has been largely along the short-term moving averages, currently showing a slight breakout. Avoid excessive shorting in the short term. The price action tonight may be compressed between 4160 and 4200. In summary, today's short-term trading strategy for gold is to primarily sell on rallies and secondarily buy on dips. Key resistance levels to watch are 4205-4210, and key support levels are 4173-4160. Please follow the trading signals carefully.Short Selling Strategy: Sell gold in batches around 4200-4205, with a target of 410-4170. Long position strategy: Buy gold in batches around 4160-4165, with a target of around 4180-4190.