The price of gold fluctuated slightly, dropping 0.6% last week. Investors’ attention has shifted to this week’s Federal Reserve policy meeting to gain further insight into interest rate prospects.  

The Red Sea witnessed the largest cruise ship attack to date, fueling bullish sentiment among investors towards crude oil and boosting oil prices to a two-month high. U.S. oil even achieved its largest weekly gain in over four months. 

Gold >>  

Gold surged and then fell back, marking its second consecutive weekly decline with a 0.6% drop last week. On Friday, spot gold closed down 0.12% at USD 2018.38 per ounce, while COMEX February gold futures fell 0.02% to USD 2017.30 per ounce. 

Gold has shown limited volatility in recent trading days, with no clear trend over the past couple of weeks. However, events that significantly impact the U.S. economic calendar, such as the Federal Reserve’s decision on Wednesday, could change the situation going forward. 

If Federal Reserve Chairman Powell takes a more dovish stance, it would support gold prices. 

Conversely, if the Federal Open Market Committee (FOMC) chair chooses to delay significant rate cuts and the timing of the first rate cut as priced by the market, yields will continue to rise, thereby boosting the dollar and suppressing precious metals. 

From a technical perspective, gold continued its oscillating bearish pattern amid choppy trading. Although prices stabilized above USD 2018 during the Asian-European sessions, showing resistance to downward pressure, they failed to break through and stay above the 4-hour opening gap level at USD 2035. 

Prices remained suppressed below USD 2030, exhibiting weak oscillations. During the late U.S. session, gold briefly surged above the USD 2026 level before facing pressure and falling back, breaking through the bottom of the oscillation and reaching around USD 2016 before closing weakly. 

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 2030-2039. 

• Key support levels to watch in the short term are around 2018-2008. 

WTI Crude Oil >>  

Crude oil has surged to its highest level in nearly two months, posting a strong weekly gain of over 6%. U.S. WTI crude rose 6.27% last week, marking its best weekly gain since September 1st.  

Brent crude rose 6.17% last week, achieving its second-largest weekly gain since the conflict in Gaza. On Friday, U.S. WTI crude futures settled at USD 78.01 per barrel, up USD 0.65 or 0.8%, while Brent crude futures settled at USD 82.95 per barrel, up USD 0.99 or 1.2%. 

Houthi rebels in Yemen claimed responsibility for an attack on a British oil tanker, marking their most significant attack on an oil tanker to date. A vessel belonging to the Toko Group was hit by a Houthi missile in the Red Sea, causing a fire.  

In response to the news, oil prices surged during trading hours, with international oil prices reaching a new two-month closing high. From a technical perspective, crude oil prices on Friday continued their bullish momentum above the USD 76 level.  

Prices experienced minor retracements during the Asian-European sessions, stabilizing around USD 76.4 before bouncing back. In the early morning, prices rebounded slightly but faced resistance at the USD 77.6 level before quickly falling back below USD 76.  

However, prices stabilized and rebounded again, surpassing and closing above the USD 78 level, marking the highest point of the week. 

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 79.0-79.6. 
• Key support levels to monitor in the short term are around 75.0-75.7. 

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