Assisted by central bank buying and geopolitical tensions, strong economic data failed to weaken the appeal of gold. On Monday, gold prices hit a record high for the seventh consecutive trading day at USD 2353.83 per ounce.  

Israel and Hamas began a new round of ceasefire negotiations, causing oil prices to plummet by over 2% at one point during the trading session.  

However, due to the stalemate in ceasefire negotiations, concerns about tight supply persist, leading to a significant narrowing of losses in the European and American trading sessions.  

Gold >>  

On Monday, assisted by central bank buying and geopolitical tensions, strong economic data failed to weaken the appeal of gold. Gold prices hit a record high for the seventh consecutive trading day. Spot gold rose to USD 2353.82 per ounce, with gains narrowing slightly afterwards, ultimately closing up 0.39% at USD 2338.94 per ounce. 

Despite easing geopolitical tensions in the Middle East, gold prices still surpassed USD 2350 per ounce, reaching historic highs. Expectations of a sharp increase in gold purchases by central banks worldwide offset hawkish bets driven by US non-farm payroll data.  

Before the release of US CPI data, in the extreme overbought situation indicated by the RSI, gold prices may reverse due to profit-taking. In terms of technical analysis, gold continued to fluctuate widely above the 2300 psychological level yesterday.  

The Asian session saw a slight decline below the 2303 level before stabilizing and rebounding. During the European session, there was a rapid rise breaking through and holding above the 2330 level, reaching near 2353 before experiencing downward pressure, then oscillating downwards.  

In the late US session, there were two rebounds, but facing pressure at the 2343 level, followed by a downward oscillation breaking the 2320 level before stabilizing, rebounding above 2330, and closing with fluctuations. 

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 2350-2360. 
• Key support levels to watch in the short term are around 2310-2320. 

WTI Crude Oil >>    

On Monday, Israel and Hamas initiated a new round of ceasefire negotiations, causing oil prices to experience their largest intraday decline, dropping by over 2%.  

However, as the ceasefire talks reached an impasse, concerns about tight supply persisted, leading to a significant narrowing of losses during the European and American trading sessions. WTI crude oil futures closed down USD 0.48, a decrease of 0.6%, at USD 86.43 per barrel; Brent crude oil futures fell USD 0.79, a decline of 0.9%, closing at USD 90.38 per barrel. 

Israeli and Hamas delegations headed to Egypt for a new round of negotiations on a possible ceasefire before the Eid holiday, easing tensions in the Middle East. This event appeared to act as a catalyst for the decline in oil prices. 

On the technical side, oil prices rebounded from the support level around USD 84.7, accelerating their ascent in the afternoon and breaking through the USD 86.3 level, leading to sideways consolidation. In the late US session, there was a second upward push but met resistance at the USD 87 level, resulting in oscillations and closing with fluctuations. 

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 87.5-88.0. 
• Key support levels to monitor in the short term are around 85.0-84.5. 

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