Gold Trade Setup – 2nd Dec

Gold enters the first week of December at a critical juncture, consolidating just above the 4,200 pivot after breaking to fresh multi-week highs. With US 10-year yields easing back from recent peaks and markets now heavily discounting a Federal Reserve rate cut in the near term. The macro backdrop is increasingly supportive for non-yielding and defensive assets. At the same time, persistent geopolitical tensions, elevated fiscal deficits and renewed volatility across equities and crypto continue to underpin demand for “hard” stores of value. We consider Gold to be an A+ conviction long for the remainder of the week. The setup combines a constructive fundamentals with a technically robust structure: a breakout, orderly retest of support, and clearly defined invalidation levels that allow for asymmetric risk-reward. Gold Trade Setup: Asset Bias & Entries Stop / Invalidation Targets Why A+ (Fundamentals, Technicals, Sentiment) Near-term catalysts (UK time) GOLD LONG – Buy dips / fade shallow pullbacks. Preferred entry zone 4,180 – 4,210, roughly today’s pullback area just under the 4,200 pivot.  Structural invalidation for the week: clear move below 4,050 – 4,000. Gives back the late-Nov breakout and breaks the key monthly level that many analysts flag.  TP1: 4,260 – 4,280 Look for retest / marginal new high vs Monday’s 4,265 peak. TP2: 4,350 – 4,400 If US data and Fed rhetoric come in dovish, as laid out in several forecasts.  Fundamentals: Gold getting pulled higher by aggressive Fed-cut pricing, softer US data, and the search for hedges amid political  volatility.  Even with US 10-yr yields around 4.09%,  real yields are easing, constructive for a non-yielding asset like gold.  Technicals: Multiple analyses flag 4,200 – 4,250 as the key pivot / resistance band. Price has already broken to fresh six-week highs near 4,265 then pulled back to hover around 4,200, classic “break, retest, decide” structure.   Sentiment: Wall St and retail surveys show a strong tilt to bullish gold expectations into 2026 (targets near 5,000 start appearing), and COT data still show sizeable speculative net longs, reflecting strong underlying demand.  2nd Dec (today): ISM Services  3rd Dec: ADP  5th Dec: NFP Dovish surprises or risk wobble  likely boosts gold; only a sharp upside surprise in yields or data meaningfully threatens the long bias near term. Chart by TradingView – Gold Trade Setup – 2nd Dec 2025 Conclusion In summary, gold currently offers one of the cleanest expressions of the easing-Fed, softer-growth narrative, with technicals and sentiment aligned in favour of further upside. As long as prices continue to hold above the 4,100 – 4,050 support region, we expect dip-buying to remain the dominant theme, keeping the path open toward a retest of recent highs and potentially higher extension targets. However, as with all high-conviction setups, execution discipline is key. Traders should respect the predefined invalidation zone, remain alert to surprises in US macro data and policy communication, and be prepared to adjust sizing if volatility spikes around major releases. Within the risk parameters, we believe this A+ gold setup deserves a prominent place on traders’ watchlists at TerraBullMarkets.com for the week ahead. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar Gold Trade Setups please visit our Commodities Trade Ideas page. Please visit our Disclaimer page. 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