Gold Prices Reach Six-Month High, Oil Prices Continue to Face Pressure

Boosted by a weakened U.S. dollar, gold prices climbed to a six-month high on Monday. The market is betting that the Federal Reserve has concluded its interest rate hike cycle, with attention shifting to U.S. inflation data set to be released later this week.

Oversupply concerns loom over the oil market, keeping prices under pressure ahead of the OPEC+ meeting, as investors await the outcomes of this week’s discussions.

Gold >>>

On Monday, gold prices surged to over a six-month high, with spot gold rising 0.33% to $2009.11 per ounce, reaching a peak not seen since May 16th at $2017.92 per ounce. December gold futures touched $2018.9 per ounce, the highest level since October 27th.

As the upside potential for the U.S. dollar is constrained, investors remain confident in their bets that the Federal Reserve will conclude its interest rate hikes, keeping gold prices on an upward trajectory.

This week, the focus shifts to the release of U.S. economic growth and inflation data, with attention now turning to the U.S. third-quarter GDP revision scheduled for Wednesday and the U.S. Personal Consumption Expenditures Price Index set to be disclosed on Thursday.

From a technical standpoint, yesterday’s gold price swiftly rose after the opening, directly hitting the key resistance level at $2018 and then retracing to consolidate above $2007.

Technical Analysis:

Today’s short-term strategy for gold suggests focusing on buying at the dip and considering short positions on rebounds.

  • Key resistance levels to watch in the short term are around 2020-2025.
  • Key support levels to watch in the short term are around 1995-1990.

WTI Crude Oil >>

On Monday, U.S. crude oil futures closed down $0.68 per barrel, a decrease of 0.90%, settling at $74.86 per barrel. Brent crude oil futures also fell by $0.60 per barrel to $79.98 per barrel, a 0.7% drop.

Analysts attribute the downward pressure on oil prices to the increase in U.S. crude oil inventories. For the week ending November 24th, crude oil inventories decreased by an average of approximately 2 million barrels. OPEC+ representatives noted that Saudi Arabia has unilaterally reduced production by 1 million barrels per day since July and is now seeking further support from OPEC+.

Investors are closely monitoring this week’s OPEC+ meeting and anticipate supply constraints until 2024, keeping crude oil prices under pressure.

From a technical standpoint, crude oil exhibited a downward trend after the opening yesterday. After briefly touching the $75.6 per barrel level, oil prices quickly broke lower, reaching a low of $74.041 per barrel and stabilizing in a consolidating pattern.

Technical Analysis:

Today’s crude oil trading strategy suggests a primary focus on short positions during rebounds and secondary consideration for long positions during pullbacks.

  • Key resistance levels to monitor in the short term are around 76.0-77.0.
  • Key support levels to monitor in the short term are around 73.0-72.0.

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