Before the release of key inflation data in the United States, the market sentiment was weak, and the price of gold continued to decline to its lowest level in nearly three weeks, dropping by nearly 1%, piercing the 2000 mark.  

Concerns about oversupply and slowing growth in fuel demand lingered, but this week, Saudi Arabia will provide more information on future production reduction plans, boosting oil prices for a modest rebound. 

Gold >> 

On Monday, spot gold fell by 1.14%, closing at USD 1981.76 per ounce, while gold futures dropped by 1.03%, closing at USD 1993.7 per ounce.  

As the market anticipates the release of the new round of U.S. Consumer Price Index inflation data, spot gold further declined, falling below the USD 2000 per ounce mark and ultimately dropping to USD 1980 per ounce, hitting an intraday low of USD 1975.77 per ounce, the lowest since November 21. 

On Monday, the market sentiment was weak, and the price of gold continued to decline for the second consecutive day, retracing from the historical highs reached last week. This week will witness major central banks announcing their latest monetary policies.  

\Ahead of the crucial interest rate decision, the market will first face the release of U.S. consumer inflation data on Tuesday, which will play a key role in shaping market expectations for the Federal Reserve’s next policy moves and provide some reference for the market. 

On the technical side, gold faced continuous downward pressure below the 2007 mark throughout the day, breaking through support and weakening further in the afternoon European session below the key 2000 level.  

In the late U.S. session, after a brief pause around the 1990 mark, gold saw accelerated selling pressure, breaking through the 1980 level and closing weakly near 1975. 

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 1997-2004. 
• Key support levels to watch in the short term are around 1970-1965. 

WTI Crude Oil >> 

On Monday, WTI crude oil futures edged up by USD 0.09 per barrel, a gain of 0.1%, closing at USD 71.32 per barrel. Brent crude oil futures increased by USD 0.19 per barrel, a rise of 0.30%, closing at $76.03 per barrel. 

Oil prices saw a slight increase this week, but concerns about next year’s crude oil oversupply and weak fuel demand growth persist, despite OPEC+ production cuts. Increased uncertainty in the global economic situation has posed challenges to the crude oil market in 2024.  

Disagreements among OPEC+ member countries at recent meetings have raised doubts in the market about further production cut plans.  

This week, the Saudi Energy Minister will provide the latest information on the possibility of further production cuts or an extension until 2024, drawing attention to the crude oil market.  

Supply concerns and potential demand rebounds continue to drive crude oil prices upward, but market participants exhibit caution and hesitation. On the technical side, crude oil prices overall traded in a narrow range around the 70.3-71.8 region, consolidating in a tight range.  

In the late U.S. session, there was a second retracement, stabilizing around the 70.5 level, with oscillations before a rebound at the close. The daily candlestick closed with a consolidating doji, maintaining an overall low-level, narrow range, oscillating rhythm. 

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 72.3-72.5. 
• Key support levels to monitor in the short term are around 69.7-69.5. 

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