The market sought refuge due to concerns about the Asian economy, leading to a surge in the US dollar to a one-month high. Gold faced downward pressure, dropping to a one-month low; oil prices declined, ending the seven-week streak of gains.  

The market’s attention is now on Wednesday’s FOMC meeting minutes in search of clues about the future interest rate path of the Federal Reserve. 

Gold >> 

Investors sought refuge due to concerns about the Asian economy, pushing the U.S. dollar to its highest level in over a month and causing gold prices to drop to their lowest point in more than a month. In the U.S. market’s closing moments, spot gold was reported at $1907.02 per ounce, down $6.49 or 0.34%. It reached a high of $1916.21 per ounce and a low of $1902.46 per ounce during the day. 

The market awaits new catalysts to gauge downward potential. This week, the focus is on Tuesday’s U.S. retail sales data and Wednesday’s Federal Open Market Committee (FOMC) meeting minutes for July, which could provide further clues on the Federal Reserve’s rate hike path. 

Gold continues its recent pattern of suppressed bearish momentum. During the Asian and European sessions, prices slightly rebounded to around the $1915 level before entering a sideways consolidation.  

In the late U.S. session, prices quickly declined, breaking below the $1910 level and reaching stability around $1902. The price later recovered, stabilizing around $1902. However, during the early hours, a second attempt to rebound faced resistance around the $1913 level, leading to a weak close. 

Technical Analysis: 

Today’s short-term strategy for gold suggests a focus on selling during rebounds, with buying on minor pullbacks as a secondary approach. 

• Key resistance levels in the short term are at 1917-1920. 
• Key support levels in the short term are at 1900-1894. 

WTI Crude Oil >> 

Oil prices closed lower on Monday, weighed down by concerns over demand and a stronger US dollar, ending a seven-week streak of consecutive gains even in the face of supply tightness. US crude oil futures fell by 0.82%, settling at $82.51 per barrel, while Brent crude oil futures closed at $86.21 per barrel, down 0.69%. 

The US July producer price index saw a slight uptick from the previous month, with the continued rise of the US dollar putting pressure on oil prices. This upward momentum in US Treasury yields indicates the market’s anticipation that the Federal Reserve’s interest rate hikes are nearing completion. 

Oil prices remained suppressed below the $83 mark, with fluctuations. During the Asian and European sessions, they were hindered by a rapid decline near the $83.1 level. In the afternoon, prices oscillated downward to stabilize around $82, rebounding slightly. During the US trading session, repeated attempts to surge above $83 were met with resistance, causing prices to weaken again, closing below the $83 mark. 

Technical Analysis: 

Today’s short-term trading strategy suggests a focus on primarily short positions on rebounds, with long positions on pullbacks as a secondary consideration. 

• Key resistance levels to watch in the short term are around 83.5-84.0. 
• Key support levels to watch in the short term are around 81.5-81.0. 

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