In early Asian trading on Tuesday (November 26), spot gold continued its decline on Monday, hitting a one-week low of $2,605.34/ounce. Gold prices plunged more than 3.3% on Monday, breaking a five-day rally and hitting the largest single-day percentage drop since June 7. It hit a nearly three-week high earlier in the session before turning down. Israeli Prime Minister Netanyahu reportedly agreed to a ceasefire in principle, fearing that the Biden administration might punish Israel through a UN resolution. Lebanese officials are cautiously optimistic about this, but emphasize that Netanyahu should not be trusted. The United States said that the agreement is close to being reached, but there are still differences to be resolved. Israel and Lebanon are close to a ceasefire, which weakens the safe-haven appeal of gold.

In addition, the news that Trump nominated fund manager Scott Bessent as the new US Treasury Secretary suppressed safe-haven buying. Some market participants believe that his negative attitude towards the trade war is not so strong. Gold is traditionally seen as a safe investment during economic and political risks, and some strategists believe that Bessent's nomination is comforting because he understands the market and his appointment may reduce the possibility of severe tariffs imposed by US trading partners. The minutes of the Federal Reserve's November meeting, GDP data and the core PCE price index will be released later this week, which may have an impact on gold prices.

From a technical perspective, the closing of a large negative column on the daily line has once again suppressed the confidence of the bulls. The price closed below the 5-day moving average of the downward channel, and the cycle moving average started to decline. At the same time, with the weak development of the cycle indicator, if the daily line breaks below the support of the 10-day moving average of 2620, the short position will be further continued.

In the 4-hour period, gold prices continued to retreat weakly in the Asian session and touched around 2658. Then they quickly rebounded and returned to above 2680 in the European session, forming an illusion of a false break. The rebound was still relatively weak. The rapid decline in the US session caused the price to run around the lower track of the Bollinger band at 2623. However, before the lower track of the Bollinger band was completely broken, even if the market was weak, He Bosheng believed that it was still necessary to prevent a significant rebound in the bulls. In other words, it is not appropriate to be overly bearish in the 4-hour period. On the whole, the short-term operation strategy for gold today is to short on rebounds and to go long on pullbacks. The short-term focus on the upper side is the 2640-2645 resistance, and the short-term focus on the lower side is the 2605-2600 support.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.