Non-farm job growth falls short of expectations, causing the U.S. dollar index to plummet to a six-week low, and gold to dip below $2,000 per ounce.
As concerns over supply eased amid tensions in the Middle East, and signs of a global economic slowdown prompted investors to refocus on demand prospects, oil prices resumed their decline.
On Monday, gold prices traded around $1988 per ounce, maintaining a high-level consolidation from the previous week but failing to break through the $2000 mark. Gold prices dropped by nearly $10 last week, with December gold futures settling up 0.29% at $1999.2 per ounce.
Analysts state that gold continues to be influenced by global geopolitical factors, with the fading of market anxiety weakening gold’s safe-haven appeal. While geopolitical events can provide tradable momentum for the gold market, they are not conducive to attracting long-term investors.
From a technical perspective, following a significant rise on Friday, gold has entered a period of minor consolidation. Last week’s trading remained primarily within a small range, and the weekly chart closed with a long lower shadow.
Considering the broader time frame and the U.S. dollar index, the strong resistance currently displayed on the weekly chart appears to be near the 2004-2007 level.
Today’s short-term gold trading strategy suggests prioritizing short positions during rebounds, with long positions considered as a secondary option during pullbacks.
- Key resistance levels to watch in the short term are around 2000-2005.
- Key support levels to watch in the short term are around 1975-1970.
WTI Crude Oil >>
On Monday, oil prices were trading around $81.10 per barrel as concerns about the risk premium due to the Israel-Palestine conflict diminished, and signs of weak demand resurfaced, leading to a second consecutive week of oil price declines.
Last Friday, U.S. crude oil settlement prices dropped by 2.36%, closing at $80.51 per barrel, while Brent crude oil futures settlement prices fell by 2.26%, closing at $84.89 per barrel.
Analysts mention that as concerns about the spread of the Middle East crisis have eased, investors are now watching whether Saudi Arabia will keep its official prices unchanged.
The slowdown in U.S. job growth for October exceeded expectations, and wage inflation cooled down, indicating some relief in the labor market conditions.
The Federal Reserve maintained stable interest rates this week, while the Bank of England kept rates at their highest level in 15 years. With a return of some risk appetite to the market, these factors have provided support to oil prices.
From a technical perspective, oil prices dipped on Friday, then rebounded and closed with positive candles. After several consecutive down days, prices reached a low point before returning to a relatively higher position.
Today’s crude oil trading strategy suggests prioritizing short positions during upward rebounds, with long positions considered as a secondary option during pullbacks.
- Key resistance levels to monitor in the short term are around 82.0-83.0.
- Key support levels to monitor in the short term are around 79.0-78.0.
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