Gold Price Under Pressure, Drops Nearly $15; Production Cuts Drive Oil Price Rebound

As U.S. Treasury yields rise, gold prices are under pressure, dropping by nearly $15.

Meanwhile, major oil-producing nations Saudi Arabia and Russia have stated that they will continue to reduce production until the end of the year, indicating that the market may face supply constraints, leading to an uptick in international oil prices.

Gold >>

On Monday, spot gold closed down by 0.73%, settling at $1,977.78 per ounce. December gold futures also saw a 0.53% decline, closing at $1,988.6 per ounce.

The 10-year U.S. Treasury yield fell to a five-week low on Friday but rose by approximately 8.5 basis points on Monday, reaching a daily high of 4.6577%. As U.S. long-term bond yields rebounded, gold prices on Monday traded near $1,985 per ounce, retracing from the high point of over $2,000 per ounce reached last Friday.

From a technical perspective, gold exhibited a continued retracement on Monday, with a small bearish candlestick on the daily chart. The highest point was $1,993 per ounce, the lowest was $1,977 per ounce, and the daily close settled at $1,977 per ounce.

Technical Analysis:

Today’s short-term gold trading strategy suggests prioritizing short positions on rebounds and considering long positions on pullbacks.

  • Key resistance levels to watch in the short term are around 1990-1996.
  • Key support levels to watch in the short term are around 1960-1966.

WTI Crude Oil >>

On Monday, U.S. crude oil rose by $0.31 per barrel, a 0.4% increase, closing at $80.82 per barrel, while Brent crude oil futures increased by $0.29 per barrel, a 0.34% rise, settling at $85.18 per barrel.

The Saudi Arabian Ministry of Energy confirmed on Sunday that they would continue their voluntary additional production cut of 1 million barrels per day in December, aiming to maintain their output at around 9 million barrels per day.

Russia also announced that they would continue their voluntary additional reduction of crude oil and petroleum product exports by 300,000 barrels per day until the end of December.

From a technical perspective, crude oil continued to retrace lower with small bearish candlesticks, showing a persistent weak consolidation.

After a rebound, it still closed at the lower end of the range. The daily chart broke the oscillating pattern of bullish and bearish shifts, with the highest point at $82.20 per barrel, the lowest at $80.60 per barrel, and the daily close at $80.80 per barrel.

Technical Analysis:

Today’s crude oil trading strategy suggests focusing on short positions during upward rebounds, with long positions considered on price pullbacks as a secondary strategy.

  • 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 80.0-79.0.

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