As U.S. Treasury yields rise, gold prices are under pressure, dropping by nearly $15.
Meanwhile, major oil-producing nations Saudi Arabia and Russia have stated that they will continue to reduce production until the end of the year, indicating that the market may face supply constraints, leading to an uptick in international oil prices.
On Monday, spot gold closed down by 0.73%, settling at $1,977.78 per ounce. December gold futures also saw a 0.53% decline, closing at $1,988.6 per ounce.
The 10-year U.S. Treasury yield fell to a five-week low on Friday but rose by approximately 8.5 basis points on Monday, reaching a daily high of 4.6577%. As U.S. long-term bond yields rebounded, gold prices on Monday traded near $1,985 per ounce, retracing from the high point of over $2,000 per ounce reached last Friday.
From a technical perspective, gold exhibited a continued retracement on Monday, with a small bearish candlestick on the daily chart. The highest point was $1,993 per ounce, the lowest was $1,977 per ounce, and the daily close settled at $1,977 per ounce.
Today’s short-term gold trading strategy suggests prioritizing short positions on rebounds and considering long positions on pullbacks.
- Key resistance levels to watch in the short term are around 1990-1996.
- Key support levels to watch in the short term are around 1960-1966.
WTI Crude Oil >>
On Monday, U.S. crude oil rose by $0.31 per barrel, a 0.4% increase, closing at $80.82 per barrel, while Brent crude oil futures increased by $0.29 per barrel, a 0.34% rise, settling at $85.18 per barrel.
The Saudi Arabian Ministry of Energy confirmed on Sunday that they would continue their voluntary additional production cut of 1 million barrels per day in December, aiming to maintain their output at around 9 million barrels per day.
Russia also announced that they would continue their voluntary additional reduction of crude oil and petroleum product exports by 300,000 barrels per day until the end of December.
From a technical perspective, crude oil continued to retrace lower with small bearish candlesticks, showing a persistent weak consolidation.
After a rebound, it still closed at the lower end of the range. The daily chart broke the oscillating pattern of bullish and bearish shifts, with the highest point at $82.20 per barrel, the lowest at $80.60 per barrel, and the daily close at $80.80 per barrel.
Today’s crude oil trading strategy suggests focusing on short positions during upward rebounds, with long positions considered on price pullbacks as a secondary strategy.
- Key resistance levels to monitor in the short term are around 82.0-83.0.
- Key support levels to monitor in the short term are around 80.0-79.0.
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.
Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.
Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.