Technical analysis by dgfacpe about Symbol PAXG: Buy recommendation (12/1/2025)

On Monday (December 1st) in late Asian trading, gold prices suddenly declined, currently hovering around $4220, down more than $36 from the earlier intraday high of $4256.51. During Monday's Asian session, gold prices briefly broke through $4250, reaching their highest level in six weeks. Gold buyers continued to dominate at the start of the new month amid growing market calls for another rate cut by the Federal Reserve as early as next week. According to CME's FedWatch tool, the market currently expects an 87% probability of a 25 basis point rate cut at the Fed's December monetary policy meeting. The US November ISM Manufacturing Purchasing Managers' Index (PMI) will be released. Looking ahead to today's trading, attention will be focused on the November US ISM Manufacturing PMI, which may provide some new clues about the health of the economy, as a series of previous economic data have become somewhat outdated. The November manufacturing PMI is expected to decline slightly to 48.6, down from 48.7 in October. A worsening contraction in US manufacturing could solidify the Federal Reserve's plans for a December rate cut, exacerbating the dollar's weakness and potentially triggering a new rally in gold. Later this week, a series of US statistics, including ADP employment changes, the ISM Services PMI, jobless claims, and the core Personal Consumption Expenditures (PCE) price index, will fill the recent data gap and provide new guidance for dollar and gold trading ahead of next week's Fed meeting. December 1st Gold Price Analysis: In my weekly review, I mentioned the pullback to the 4245-50 level, where it repeatedly tested resistance. Today's gains were somewhat unexpected, breaking through 4245 and reaching a high of 4256. However, a rapid decline finally occurred in the late Asian session, currently reaching a low of 4215, close to our profit-taking target. The next key level to watch is the 4200 support level; whether to go long then is crucial! Whether it was the weekend or the opening of the week, everyone was focused on the resistance at the secondary high of 4245. However, the market ultimately broke through this resistance by more than 10 points, and has now experienced a rapid pullback, falling to a low of around 4215 and fluctuating there. In the late Asian session, the key level to watch is the 4200 psychological barrier. If it doesn't break, the strategy remains the same: sell on retracements to 4200 and buy on dips, betting on a continuation of the upward trend! First, after a rapid rise, don't rush to chase the price higher. Second, if the upward momentum doesn't continue in the afternoon, there's a risk of a short-term pullback. Third, today we need to watch two support levels for gold during the daytime session: around 4215 and around 4192. If these levels hold, we maintain a bullish outlook. The daily chart pattern isn't too confusing or unclear; the market is in a strong upward trend, and pullbacks to support levels present buying opportunities. With the resistance level no longer visible, we need to watch whether the price can effectively break above 4250. In summary, today's short-term gold trading strategy is recommended to focus on buying on dips and selling on rallies. The key resistance level to watch in the short term is 4255-4260, while the key support level is 4173-4180. Please keep up with the pace of the market.