Gold Bounces Back, Oil Halts Three Weeks of Decline, U.S. CPI Data Looms

The weakened U.S. dollar prompts a rebound in gold prices as the market awaits the impactful release of U.S. CPI data, focusing on Federal Reserve statements.

Meanwhile, oil prices halt a three-week decline with a bounce of over 1%, shifting market attention to the IEA’s monthly report on the oil market.

Gold >>

On Monday, spot gold closed up 0.41%, settling at $1946.09 per ounce. December gold futures also gained 0.65%, closing at $1950.2 per ounce.

Influenced by a weakened US dollar and declining US Treasury yields ahead of the release of the US Consumer Price Index (CPI), spot gold experienced a slight rebound.

The US dollar, after reaching a one-week high against other currencies in the previous trading day, rose by 0.1%, diminishing the attractiveness of gold to holders of other currencies. Market attention now turns to the release of the US Consumer Price Index on Tuesday and speeches by several Federal Reserve officials later in the week.

On the technical front, gold exhibited minor fluctuations after the opening on Monday. It briefly touched the 1933 level in early trading, but without a breakthrough. Instead, it showed a slight upward trend, remaining suppressed below 1940 during the European session.

Technical Analysis:

The short-term trading strategy for gold today suggests focusing on buying during pullbacks and considering short positions during rebounds.

  • Key resistance levels to watch in the short term are around 1958-1963.
  • Key support levels to watch in the short term are around 1935-1930.

WTI Crude Oil >>

Crude oil prices halted a three-week decline, witnessing a market sentiment uplift on Monday with an increase of over 1%. WTI crude rose by $1.09, or 1.4%, closing at $78.26 per barrel, while Brent crude increased by $1.09, or 1.3%, closing at $82.52 per barrel.

Despite Iraq expressing support for the OPEC+ group’s production cuts, contributing to a rebound on the previous Friday, oil prices experienced a roughly 4% decline throughout the entire last week, marking the first three-week consecutive drop since May.

The OPEC Monthly Report indicated a healthy fundamental outlook with robust global economic growth, leading to a market sentiment recovery and a Monday increase of over 1%. The market is now awaiting the IEA’s monthly oil market report and U.S. CPI data.

Last Monday, crude oil faced a series of downward retracements, resulting in a three-week consecutive decline, relinquishing nearly half of the previous upward movement. The weekly chart entered a phase of broad oscillation, characterized by significant fluctuations between bullish and bearish forces.

Technical Analysis:

Today’s crude oil trading strategy suggests prioritizing long positions on pullbacks and considering short positions on rebounds.

  • Key resistance levels to monitor in the short term are around 80.0-80.5.
  • Key support levels to monitor in the short term are around 77.5-77.0.

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