Gold surged to a six-week high on Monday! The core reason is simple – the U.S. dollar index fell to a two-week low, combined with increasing expectations for a rate cut in December and loose monetary policy next year, which pushed precious metals to rise.

The overnight ISM data also added fuel to the market: In November, the US manufacturing PMI fell to 48.2, marking two consecutive months of decline and indicating that the contraction in manufacturing is accelerating. This has made the market more convinced that the central bank will maintain a loose policy, and gold, as a safe-haven asset, naturally becomes more attractive.

From a technical perspective, today (December 2nd), gold opened a bit weak and even briefly fell below the middle track of the ascending channel, which is actually a good buying opportunity. I plan to go long at the support level of 4207/08, with the first target being the 4238 resistance level at the 1-hour SMA20 moving average. The key resistance to focus on during the day is 4260. The short-term trading strategy is very clear, mainly focusing on buying low and following the trend.