Gold prices rose as the U.S. dollar pulled back ahead of key inflation data release this week; all eyes are on the CPI data. Crude oil experienced minor fluctuations, with supply tightness due to production cuts being the primary driver of current oil prices. This week’s focus is on the OPEC monthly report.
On Monday, in the U.S. market, the spot gold price was trading near $1,923 per ounce. The focus of this week will be on the release of the U.S. Consumer Price Index (CPI) data for August, scheduled for Wednesday.
It is expected that the August CPI will increase by 0.5% month-on-month, while the core CPI is expected to rise by 0.2% month-on-month.
The U.S. dollar retreated ahead of the key U.S. inflation data CPI release, leading to an increase in gold prices. Gold briefly surpassed $1,930 and is poised to mark its best trading day in nearly two weeks.
Today’s economic calendar is relatively light, with the market’s main focus on this week’s U.S. CPI inflation report, which will have significant implications for the Federal Reserve’s interest rate path.
Gold has maintained a narrow trading range, currently hovering around $1,923, with a daily high reaching $1,930 and intraday fluctuations of about $15.
Gold previously surged to $1,953 and then fell from $1,946 to $1,915. The current key support level is $1,915, which has been tested multiple times but not broken.
After touching the $1,915 support, gold is attempting to stabilize around the $1,920 level, with a current trend of steady rebound. The immediate resistance levels are in the $1,928-$1,930 range.
Today’s short-term trading strategy for gold suggests a primary focus on short positions during rebounds, with long positions considered as a secondary option during pullbacks.
- Key resistance levels to watch in the short term are around 1933-1938.
- Key support levels to watch in the short term are around 1912-1907.
WTI Crude Oil >>
On Monday, U.S. crude oil experienced slight fluctuations as crude oil futures closed down $0.22, or 0.25%, at $87.29 per barrel. Brent crude oil futures closed down $0.01, or 0.01%, at $90.64 per barrel, while INE crude oil futures rose $0.01, closing at 696.2 yuan.
This week, investors are closely watching the monthly reports from the International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC).
Last Friday, international crude oil prices closed near $87.20 per barrel, and U.S. crude oil inventories for the week ending September 1st fell to the lowest level since December 2, 2022.
Inventories declined by a total of 6.307 million barrels, marking the largest drop since August 25, 2023. According to Platts Analytics, Saudi Arabia’s crude oil production fell to its lowest level since May 2021, at 8.95 million barrels per day.
Supply tightness due to production cuts remains a key driver of current oil prices, and in the past few days, oil prices have been consolidating near their highs, displaying resistance to significant declines.
Yesterday, oil prices stabilized above the $86.70 level after some volatility, showing sideways trading with resistance to declines.
During the Asian and European sessions, prices repeatedly stabilized above $86.70. In the late U.S. session, prices briefly broke through the $88.10 level but faced resistance and retraced, ultimately settling near the $87 level with some oscillations.
Today’s short-term strategy for crude oil suggests a primary focus on going long during pullbacks, with shorting on rallies considered as a secondary option.
- Key resistance levels to monitor in the short term are around 88.5-89.0.
- Key support levels to monitor in the short term are around 86.3-85.8.
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.
Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.
Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.