The ADP is lower than expected. After experiencing a decline in the first two trading days, gold saw a slight rebound, stabilizing above the 2020 threshold.

U.S. crude oil inventories surged significantly, coupled with OPEC+ production reduction plans falling short of expectations, triggering market concerns about oversupply. This has pressed oil prices to decline for the fifth consecutive trading day, reaching the lowest level since early July.

Gold >> 

On Wednesday, spot gold closed up 0.30%, finishing at USD 2025.30 per ounce, while gold futures gained 0.57%, closing at USD 2047.90 per ounce. 

The “small non-farm” ADP employment figures for November in the United States recorded an increase of 103,000, below the market expectation of 130,000 and marking the fourth consecutive month of falling short of expectations.  

With the U.S. labor market losing significant momentum last month, the gold market found new buying interest. In the midst of volatile trading, gold’s technical aspects stabilized and rebounded, closing positively.  

During the Asia-Europe session, prices rapidly fluctuated and climbed near the $2019 level, accelerating further in the afternoon to break through and stay above the $2030 mark, continuing to show strength. 

However, after rapidly breaking through the USD 2035 level, gold prices did not continue rising but instead faced pressure, quickly falling back to test the USD 2020 level, the early support point.  

In the late U.S. session, gold prices made a second attempt to rise, facing resistance at the USD 2025 level and closing with oscillations. 

Technical Analysis: 

Today’s short-term strategy for gold suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks. 

• Key resistance levels to watch in the short term are around 2035-2040. 
• Key support levels to watch in the short term are around 2000-2003. 

WTI Crude Oil >> 

On Wednesday, WTI crude oil futures fell below the USD 70 per barrel threshold for the first time since July this year, closing down USD 2.94 or 4.07% at USD 69.38 per barrel.  

Brent crude oil futures settled at USD 74.30 per barrel, marking the first time below USD 75 per barrel since the end of June, with a decline of 3.76% or USD 2.9. 

API data revealed a comprehensive increase in crude oil and petroleum product inventories, particularly a significant rise in commercial crude oil stocks in the Cushing region of the United States.  

Following the data release, oil prices experienced a slight decline, and the continuous upward trend in inventories reinforced the real concerns about oversupply pressure in the crude oil market.

Additionally, Saudi Arabia continued to lower its official selling prices to Asia, seen as a signal of weakening supply and demand in the crude oil market.  

Investor outlook on the crude oil market did not improve after the OPEC meeting; instead, pessimistic expectations about the diminishing effectiveness of OPEC+ production cuts strengthened. Rebuilding investor confidence poses a significant challenge for OPEC. 

From a technical perspective, crude oil continued its recent trend of extremely weak bearish movements.  

During the Asia-Europe session, prices weakly rebounded but faced resistance at the USD 72.6 level, fluctuating and falling. In the afternoon, prices further broke below the USD 72 and USD 71 integer levels, accelerating the decline during the late U.S. session, reaching weak closing levels near USD 69.

Technical Analysis: 

Today’s crude oil trading strategy suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks. 

• Key resistance levels to monitor in the short term are around 72.0-73.0. 
• Key support levels to monitor in the short term are around 68.0-67.0. 

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