The downtrend in gold has become apparent.
news：
December 1st in the US marks the official end of the Federal Reserve's quantitative easing (QT) policy (confirmed at the October 29th meeting). This means:
1️⃣ The end of QT = a systemic halt to liquidity injection, shifting the financial market from a "liquidity contraction mode" to a "stability mode."
2️⃣ Marginal easing of US Treasury supply pressure, reduced risk of rising long-term interest rates, and a potential for the yield curve to flatten again.
3️⃣ The rapid decline in bank reserves has ceased, significantly easing liquidity tensions in the overnight financing and repurchase markets.
4️⃣ The "liquidity discount" in risk asset pricing has begun to diminish, which is conducive to the valuation recovery of such assets.
5️⃣ The cessation of QT does not equate to the resumption of QE, but rather a significant turning point signaling the end of the tightening cycle.
6️⃣ The core of market competition will shift from the "intensity of balance sheet reduction" to "when to cut interest rates and whether to restart balance sheet expansion."
7️⃣ The macroeconomic narrative has shifted from "passively deflating bubbles" to "actively stabilizing the market," confirming the policy bottom.
Technical aspects：
Looking at the 1-hour chart，Gold prices consolidated slightly before declining, accelerating their fall after breaking below the previous night's low of 4220. They reached a low near 4180 before rebounding and consolidating. With the price breaking yesterday's low, the downtrend is likely to continue. Short-term resistance is around 4220, while support lies at the 5-day moving average on the daily chart at 4175, which also represents the retracement level of the 4152-4265 upward move.
Strategy Signals：
Buy: 4215-4220 Stop Loss: 4230 Target: 4190-4170
