The U.S. dollar sees its fifth consecutive decline, marking its largest drop in seven months. Gold experiences fluctuations and ends slightly lower, driven by rising investor risk aversion and dovish statements from Fed officials.  

Oil prices also retreat slightly as concerns about crude supply disruptions ease among investors. The market is now focused on this week’s release of the September Fed meeting minutes and CPI data. 

Gold >> 

With increased investor risk aversion and a series of dovish statements from Fed officials, the U.S. dollar continues its fifth consecutive day of decline, marking its largest drop since May.  

On Tuesday, gold prices experienced fluctuations as demand for safe-haven assets rose, with spot gold trading at $1,860.42 per ounce, down 0.04%, while December gold futures gained 0.59%, closing at $1,875.30 per ounce. 

As market attention shifts to the Middle East, heightened tensions disrupt global markets, providing continued support for precious metals futures driven by safe-haven buying. However, some investors are cautiously returning to higher-risk assets, awaiting further clues about the Fed’s policy stance. On Tuesday, gold prices held near one-week highs. 

The market is closely watching speeches from Fed officials, the release of Fed meeting minutes, and the U.S. inflation data set to be published on Thursday. 

Gold prices, which had bottomed near $1,810 last week, have been on an upward trajectory due to increased risk aversion. Yesterday, gold opened higher and continued its upward trend, with daily gains, following a stabilization around the $1,810 level.  

Gold opened higher, corrected, and further refreshed its high to $1,862 after yesterday’s consolidation. In early trading today, it made a slight push upwards to $1,865. 

Technical Analysis: 

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

• Key resistance levels to watch in the short term are around 1870-1876. 
• Key support levels to watch in the short term are around 1840-1845. 

WTI Crude Oil >> 

On Tuesday, concerns about interruptions in crude oil supply eased slightly, leading to a minor dip in oil prices, although the market remained cautious. Brent crude oil closed at $87.65 per barrel, down by $0.50 or 0.57%, while WTI crude oil closed at $85.97 per barrel, down $0.41. 

The market is closely monitoring the situation in the Middle East, and oil prices have seen significant volatility amid escalated risks. After a substantial increase on Monday, prices retreated on Tuesday.  

Concerns about crude oil supply disruptions have lessened, but market sentiment remains relatively cautious. Investors have not engaged in aggressive selling but are closely watching further developments. 

Analysts suggest that the Israel-Palestine conflict may exacerbate inflation and inhibit economic growth. Additionally, any oil-producing nation, led by Saudi Arabia, could drive crude oil prices even higher, causing negative inflationary impacts on Western nations. 

From a technical perspective, crude oil prices oscillated within a range the previous day. The high point encountered resistance around $86.71, while the low point found support around $85.20.  

Crude oil prices closed with a small positive candlestick, breaking through the previous upward channel’s lower boundary but with a slight pullback in the closing, resulting in an upper shadow.  

It is anticipated that in the coming days, there may be repeated candlestick patterns resembling this one, with the potential for repeated upward momentum. 

Technical Analysis: 

Today’s crude oil trading strategy suggests focusing primarily on long positions on pullbacks, with short positions on high rebounds as a secondary approach. 

• Key resistance levels to monitor in the short term are around 87.0-88.0. 
• Key support levels to monitor in the short term are around 84.0-83.0. 

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