Gold Market Trend Analysis -
Last week, Powell emphasized that the Federal Reserve will seek a balance between curbing inflation and supporting the labor market. If the U.S. economic growth exceeds expectations, the pace of interest rate cuts may be delayed. Conversely, if the economy slows down more than anticipated, interest rates may decline more rapidly. In the short term, the gold market continues to face pressure amid a strong dollar, with gold prices consistently encountering resistance at higher levels and forming lower highs, stabilizing somewhat from the lows reached after the release of last Friday's non-farm payroll data. Although market expectations for a significant rate cut by the Federal Reserve in November have noticeably diminished, ongoing geopolitical risks in the Middle East still provide some support for gold. Additionally, with the backdrop of potential rate cuts, gold attracts more buying interest when prices are low.
In summary, the current gold market is still digesting the possibility of a substantial interest rate cut by the Federal Reserve before the end of this year, coupled with ongoing geopolitical tensions, which create a favorable environment for safe-haven precious metals. Therefore, gold's pullback will attract a significant amount of buying interest. In the short term, the market leans towards weakness, but in the medium term, it is easier to rise than to fall.
Gold Strategy -
The key trading suggestion for the market is to take a short position near the break of 2625-2620 and to buy on dips at the 2600-2605 level. For the day, focus on the resistance level at 2660-2670 and the support level near 2580-2590.
Advertisement
Crude Oil Strategy -
After falling in the first half of the week, crude oil prices rebounded, supported by the lower Bollinger Band, and then were strongly pushed higher due to the tense situation in the Middle East. The daily high reached $72.52 per barrel, and after consolidation, the daily closing price was at $71.27 per barrel. The market closed with a large positive candlestick with a longer lower shadow than the upper shadow, indicating potential for further upward movement. Currently, the high point has already stood above 74.
The crude oil market is currently too influenced by the situation in the Middle East, and the short-term market trend carries a strong emotional risk. In terms of operation, the crude oil market has a full large positive candlestick, effectively standing above the previous converging triangle's lower track resistance point, thus returning within the channel. Therefore, if the support at 72.9 is confirmed on a pullback, a continued bullish outlook is maintained. If the short term cannot break below 73, then the high position continues to be bullish, with resistance targets at 76-77. If there is a pullback to the target division point, entries can be made with a stop loss.
Spot Silver -
The silver market opened yesterday at 31.674 and first fell to 31.253 before quickly rising. The daily high reached 31.768 before the market fell in a震荡 manner. The daily low reached 30.106 before the market rebounded at the end of the day, closing at 30.658. Today's suggestion is to go short at 31.25 with a stop loss at 31.45, with targets below at 30.5 and 30.2.