Yesterday, the U.S. dollar declined as investors awaited Thursday’s U.S. consumer price report for signs of the direction of the Federal Reserve’s monetary policy.  

Gold price continued its three-day decline, reaching a near one-month low; oil price reached multi-month highs, with the global benchmark Brent crude futures hitting their highest level since January.  

Prior to this, significant reductions in U.S. refined oil inventories, along with Saudi and Russian production cuts, outweighed concerns about demand slowdown. 

Gold >>

Yesterday, the price of gold continued its third consecutive day of decline, closing at the lowest level in nearly a month. Currently, investors are awaiting the release of the US July Consumer Price Index (CPI).  

Meanwhile, they are also anticipating the next batch of US inflation data set to be announced on Thursday, which might offer clues on whether the Federal Reserve will raise interest rates again in September.  

The weakening US Treasury yields are providing some support for gold prices, but the relatively strong performance of the US dollar is exerting noticeable pressure on gold. The possibility of further downward movement in gold prices cannot be ruled out.  

However, ahead of the release of US CPI data, the downside potential for gold prices is expected to be limited, leaning towards a range-bound downward trend. 

At the close of the US market, gold was priced at $1914.07 per ounce, a decrease of $10.97 or 0.57%. Yesterday, gold’s technical aspect showed a weak downward trend amid volatile trading, experiencing a dip.  

During the Asian-European session, it stabilized around the $1924 level and quickly rebounded, accelerating upward in the afternoon to breach the $1932 level before falling back into a sideways oscillation.  

In the European session, it faced pressure, declining slowly to around $1923, rebounded twice to $1927 and then resumed its downward movement. In the late US session, it accelerated its decline, breaking below the $1920 level and continuing to weaken, closing at around $1913. 
Technical Analysis: 

Today’s short-term trading strategy for gold suggests prioritizing short positions on rebounds and considering long positions on pullbacks.  

• Key resistance levels to watch in the short term are around 1925-1930. 
• Key support levels to watch in the short term are around 1905-1900. 

WTI Crude Oil >>

In the early Asian trading session today, WTI crude oil is trading near $84.15 per barrel. On Wednesday, U.S. oil recorded a 1.67% gain, marking a nearly 4-month high.  

Brent crude oil also reached its highest level since January, supported by significant reductions in U.S. petroleum inventories and production cuts by Saudi Arabia and Russia, which outweighed concerns about slowing demand in Asia. 

Saudi Arabia, the largest oil exporter, plans to extend its voluntary production cut of 1 million barrels per day for another month until the end of September, providing support to oil prices. Russia has also announced a reduction of 300,000 barrels per day in oil exports for September.  

The Saudi cabinet reiterated its support for the preventive measures taken by the OPEC+ alliance, consisting of OPEC and its allies, to stabilize the market. 

Yesterday’s oil price action saw a strong bullish momentum, with a technical foundation around the $82.6 level. The price surged above $84 in the Asian-European sessions, consolidated, and then experienced accelerated upward movement during the U.S. session. Despite a brief dip to the $83 level, the price managed to close above $84, indicating robust strength. 

Technical Analysis: 

Today’s short-term trading strategy suggests focusing primarily on buying on pullbacks, with selling on upward bounces as a secondary approach.  

• Key resistance levels to watch in the short term are around 85-85.5. 
• Key support levels to monitor in the short term are around 82.5-83. 

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