During Friday's (November 24th) Asian session, spot gold oscillated narrowly, and it is now trading around 1993. Yesterday was Thanksgiving Day and the U.S. session closed. The market trade was thin for this period. For example, the USDX dropped slightly, and the gold appreciated a little with limited trading space despite a range of 10-dollar fluctuations. Yesterday, the Eurozone PMI data slightly warmed up but is still below the threshold for 6 consecutive months. The risk of recession has increased. Yesterday's minutes of the European Central Bank (ECB)'s monetary policy meeting in October were dovish. The ECB may start the rate cut earlier than the U.S. in the middle of next year, which also signals that the external financial environment is gradually easing. It will be a great opportunity for future gold prices. For the USDX, although the long-term weakening trend is taking shape, it needs to rebound after being oversold. Besides, with the constraints of U.S. bond yields, it will not go down smoothly. We need to wait before making good profits, and the downward trend may be smoother next year. The market was thin yesterday, but there is still space if you insist on short-term trading. However, this is a bad habit that will only weaken your execution ability. Once the system signals come out, will you stick to that? Self-discipline is important!  

Data: The Eurozone manufacturing PMI in November rebounded from the previous 43.1 to 43.7, slightly better than market expectations. But since July 2022, manufacturing activity has been shrinking every month. 

Today's focus: U.S. IHS PMI Index.

Gold narrowly oscillated yesterday and rebounded slightly at lows, closing the daily chart slightly higher. Looking at the 4H chart, gold is running in an ascending channel, and it is near the lower area of the channel after two days of decline. Meanwhile, this area is near the 5-day SMA (1990), and gold is testing the support level. If the support level is effective, the resistance above will be the channel center, or the previous high (between 2007 and 2009). Moreover, gold may test the resistance at 2024 if it surges further higher. Nevertheless, the ascending momentum is insufficient, and gold will oscillate downward to test the support repeatedly. It may even depreciate for a short period. The initial support will be at 1986, and further support will be at 1972. The trading range will be 1986-2007 today, and aggressive investors could buy low and sell high in this range.

Trading direction: Short

Entry price: 2007

Target price: 1987

Stop loss: 2012

Support: 1987.000/1972.000

Resistance: 2009.000/2024.000