As central bank interest rates in various countries fluctuate, the US dollar has experienced a slight decline, and cautious sentiment in the market has risen. The price of gold is holding above the 2020 level.  

Concerns in the market about interruptions in crude oil supply have led to a more than 1% increase in oil prices, reaching a new high in nearly two weeks.  

Gold >> 

On Monday, as hopes for the end of the global tightening cycle have been growing, gold is currently hovering above USD 2020 per ounce, continuing to receive support. Spot gold closed up 0.37% at USD 2027.17 per ounce, while gold futures gained 0.24%, closing at USD 2040.5 per ounce. 

Following a significant weakening of the US dollar last week, the US dollar has experienced substantial volatility against multiple currencies, highlighting gold’s safe-haven function.  

Analysts believe that gold will experience a strong seasonal tailwind in the coming six weeks, supported by the dovish stance of the Federal Reserve and the decline of the US dollar. From a technical perspective, gold is generally oscillating within the narrow range of 2018-2033.  

After stabilizing around the USD 2020 level with two retracements before and after the U.S. session, it quickly surged, breaking through the European session’s opening decline at the USD 2027 level.  

It encountered resistance near USD 2033, experiencing a pullback and entering a range-bound consolidation before closing. 
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 2034-2040. 
• Key support levels to watch in the short term are around 2015-2000. 

WTI Crude Oil >> 

On Monday, oil prices rose by nearly 2% as concerns in the market grew over the Red Sea attacks potentially disrupting maritime trade and supply costs. At the opening, both benchmark indices surged by nearly USD 3 per barrel.  

WTI crude oil closed up USD 1.04 per barrel, a 1.46% increase, at USD 72.47 per barrel. Earlier in the day, it had risen by 3.96%, reaching a two-week high of USD 74.25 per barrel. Brent crude oil closed up USD 1.40 per barrel, ending at USD 77.95 per barrel, with a daily increase of 1.83%. 

Complex information from the Federal Reserve about the prospect of interest rate cuts in 2024 led to a rise in US Treasury yields on Monday.  

Concerns about potential interruptions in crude oil supply were sparked by increased attacks by Houthi militants on ships in the Red Sea, contributing to the increase in oil prices. On the technical front, crude oil experienced a mixed session.  

Prices faced pressure around the USD 72.5 level during the Asian and European sessions, rapidly weakening. In the late U.S. session, there was a quick downward movement, breaking through the USD 71 level in a volatile pullback.  

Bulls regained control in the late U.S. session with a sharp V-shaped rebound, accelerating to break through the USD 74 level and reaching USD 74.6 before a strong closing pullback at 23:00. 

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 74.0-75.0. 
• Key support levels to monitor in the short term are around 71.0-70.0. 

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