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Gold Prices Fell Slightly As The Dollar Index Rallied

1. Forex Market Insight  


Yesterday, data showed that the U.S. housing construction unexpectedly fell in September and building permits fell to a one-year low due to severe shortages of raw materials and labor.

In this regard, it is supporting expectations of a sharp slowdown in economic growth in the third quarter. Through this, the dollar fell, leading the euro to fluctuate upward.

Technical Analysis: 

(EUR/USD 1-hour chart) 

Execution Insight: 

Today, we pay attention to the 1.1622-line. If the euro is suppressed by the 1.1622-line, it will test the 1.1554-line of support again. If the euro breaks through 1.1622 and stabilizes above the 1.1622-line, it will open up a further upside space. Then, pay attention to the suppression strength of the two positions of 1.1708 and 1.1663 in turn. 

GBP Intraday Trend Analysis 

Fundamental Analysis: 

The dollar narrowed its losses yesterday as the U.S. Treasury yields (yield rates) climbed, but remained lower during the day as other currencies, including the pound, were boosted by expectations of an earlier-than-expected rate hike.

The dollar hit a one-year high against a basket of other currencies last week as the U.S. bond yields surged and investors bet the Federal Reserve may need to raise interest rates to tackle high inflation. Additionally, yields appeared to stabilize yesterday, then moved higher again, with the benchmark 10-year U.S. Treasury yield hitting a more than three-month high.

Technical Analysis: 

(GBP/USD 1-hour chart) 

Execution Insight: 

The pound today is mainly focused on the first line of the middle Bollinger band. If the pound steadily runs above the middle rail of the Bollinger band, it will maintain the bullish trend. At that time, pay attention to the suppression of the 1.3888-line. If the strength of the pound falls below the middle rail of the Bollinger band, it will open up a further room for callbacks. At that time, pay attention to the support at 1.3721 and 1.3669.

2. Precious Metals Market Insight



Fundamental Analysis: 

Gold prices fell slightly as the U.S. dollar index rallied. This comes after gold had been gaining support from the stagflation theme, brewing in recent weeks and from a weaker dollar.

The U.S. dollar performed poorly yesterday as the rest of the central banks’ currencies were on the verge of an uptrend. Movements in the foreign exchange market weakened the appeal of the dollar, which had benefited from expectations that interest rate hikes would come sooner than previously expected.

Technical Analysis: 

(Gold 1-hour chart) 

Trading Strategies: 

Today, gold pays attention to the 1782-line. If the 1782-line is under pressure, then pay attention to the support strength of the two positions of 1768 and 1757. If the strength breaks through 1782 and stands above the first line of 1782, it will then test the suppression of the first line of 1801 again.

3. Commodities Market Insight 

WTI Crude Oil 

Fundamental Analysis: 

U.S. oil hovered near $82.50 per barrel. API data released in the morning showed an increase in crude oil inventories but a decrease in gasoline inventories.

Oil prices rose yesterday, with U.S. oil closing at a seven-year high of $82.46 per barrel. Meanwhile, Brent oil closed above $85 per barrel for the first time since October 2018, driven by stronger equity markets, and lingering concerns about the global energy crisis, as well as the impact of increased demand as winter approaches.

Technical Analysis: 

(Crude oil 1-hour chart) 

Trading Strategies: 

Oil prices are still paying attention to the 80-line today. If the oil price is above the 80-line, keep the idea of maintaining the bullish trend. Then, pay attention to the suppression of the 84.23-line in turn. If the oil price falls below the 80-line, it will open up further a downside space. At that time, pay attention to 78.25. and 76.89 support strength.

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. 

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