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Gold Prices Welcomed A Six Consecutive Rise, Upon Strong U.S. CPI Data

1. Forex Market Insight  


The dollar hit its highest in nearly 16 months against the euro yesterday after the U.S. posted its highest inflation reading in 30 years, sparking bets that the Federal Reserve will tighten the monetary policy sooner than expected.

Data released on Wednesday, 10th November 2021, showed that the U.S. consumer price index (CPI) rose the most since 1990 in October, fueling speculation that the Fed will raise interest rates sooner than expected, with traders questioning the Fed’s stance that the current high inflation is “temporary”. The dollar index is set to rise for a second straight session, rising to 95.19 at one point during the session, the highest since July 22, 2020.

Technical Analysis: 

(EUR/USD 1-hour chart) 

Execution Insight: 

Today, pay attention to the 1.1535-line. If the euro runs steadily below the 1.1535-line, maintain the bearish trend, and pay attention to the support of the 1.1401-line below. If the strength of the euro breaks through the 1.1535-line, it will open up a further upside space. At that time, pay attention to the two positions of suppression strength at 1.1583 and 1.1622.

GBP Intraday Trend Analysis 

Fundamental Analysis: 

The pound fell by 0.25% against the dollar at 1.3372 after hitting its lowest since December 2020 at 1.3359. Uncertainty around the Bank of England’s policy outlook and heightened Brexit-related risks weighed on the pound, with data showing that the U.K. economy lagged behind rivals in the July-September period.

Technical Analysis: 

(GBP/USD 1-hour chart) 

Execution Insight: 

The pound today is mainly focused on the 1.3522-line. If the pound runs below the 1.3522-line, then pay attention to the support at the 1.3302 and 1.3186 positions in turn. If the pound breaks through the 1.3522-line, then pay attention to the suppression at the 1.3574 and 1.3669 positions.

2. Precious Metals Market Insight



Fundamental Analysis: 

Yesterday, gold prices welcomed a six consecutive rise, after strong U.S. Consumer Price Index (CPI) data pushed investors scrambling to buy gold, which is seen as a hedge against inflation.

The fading popularity of the stock market also supported gold prices, but a stronger dollar dragged down gold price gains. The main focus during the day is the University of Michigan consumer confidence index and job openings data. In addition, attention should also be paid to the New York Fed President Williams’ speech.

Technical Analysis:

(Gold 1-hour chart) 

Trading Strategies: 

Gold pays attention to the 1869-line today. If the price of gold runs stably below the 1869-line, then pay attention to the support of the 1844 and 1831 positions. If the price of gold breaks the 1869-line, it will open up a further upside space. At that time, pay attention to the suppressive strength of each position at 1880 and 1887.

3. Commodities Market Insight 

WTI Crude Oil 

Fundamental Analysis: 

Oil prices fluctuated sharply yesterday, reaching an intraday low of $80.20 per barrel, dragged down by OPEC’s downgraded demand expectations. However, it rebounded from an intraday low of $80.20 per barrel as the market believes demand will strengthen further in the coming months following the outbreak. Meanwhile, investors weigh the possibility of White House intervention in the market to calm energy prices.

Technical Analysis:

(Crude oil 1-hour chart) 

Trading Strategies: 

Today, oil prices are paying attention to the 78.92-line. If oil prices run above the 78.92-line, they will focus on the suppression of the 81.07 and 82.83 positions in turn. If the oil price drops below 78.92, it will open up further downward space. At that time, focus on the 76.89-line of support.

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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