Gold Price Dips Below 10-Day Moving Average, Oil Price Hits Near Two-Month Low

The market’s focus shifts to the Federal Reserve meeting as safe-haven demand continues to rise. Gold prices dipped slightly near the 10-day moving average, with gold futures falling below the key level of $2,000 per ounce.

Crude oil production is on the rise, leading to another drop in oil prices, hitting a fresh low for the past two months.

Gold >>

On Tuesday, the focus turns to the upcoming Federal Reserve meeting, with investors closely watching the Fed’s actions. Gold prices saw a minor dip, approaching the 10-day moving average. Spot gold declined by 0.62%, closing at $1,983.87 per ounce.

December gold futures decreased by 0.56%, ending at $1,994.30 per ounce, with a cumulative rise of nearly 6.87% for the month of October.

The Middle East situation and this week’s Federal Reserve meeting have both stimulated safe-haven demand for gold. Gold prices continued to trend downward, breaking below $2,000 per ounce, although they still showed an increase of around 7% for the month of October.

Analysts suggest that the strength of the U.S. dollar is putting pressure on precious metal prices. Since early July, the U.S. dollar index has risen by approximately 6%. A higher interest rate environment implies that investors may find attractive returns by allocating funds to U.S. treasuries rather than gold.

From a technical perspective, gold initially opened at $1,995.7, briefly retraced to $1,990.4 after reaching a high of $2,008 during the U.S. trading session, and then quickly fell. After breaking below the early session low, the daily low reached $1,978.6.

Technical Analysis:

Today’s short-term gold trading strategy suggests focusing on 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 1995-2000.
  • Key support levels to watch in the short term are around 1970-1965.

WTI Crude Oil >>

On Tuesday, oil prices continued to decline, with U.S. crude oil falling by $1.29, a drop of 1.57%, closing at $81.02 per barrel, and hitting an intraday low of $80.72 per barrel, marking a near two-month low. Brent crude oil also declined by $1.33, a decrease of 1.54%, closing at $85.02 per barrel.

The potential containment of the Israel-Palestine conflict, along with data indicating increased production from OPEC and the United States, has contributed to the downward pressure on oil prices. Additionally, weaker-than-expected factory activity in the world’s largest oil-importing countries has exacerbated market pessimism.

From a technical perspective, oil prices opened at $83.26 and initially saw an uptrend, reaching a daily high of $84.03, but then experienced a strong late-session pullback. The daily low was established at $81.36, and the daily close settled at $81.99.

Technical Analysis:

Today’s crude oil trading strategy suggests focusing on 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 82.5-83.0.
  • Key support levels to monitor in the short term are around 80.0-79.5.

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