The Middle East situation is increasingly tense. Coupled with Powell’s dovish speech, the gold price hit a historic high of $2144.68 per ounce; OPEC+ member countries reached a production reduction agreement, but it fell short of market expectations, causing oil prices to drop to a two-week low. 

Gold>>>

On Monday, during the early Asian session, spot gold briefly surged by about $70, hitting a historical high of $2144.68 per ounce, with a gain of approximately 3.54%. This continued the upward momentum from last Friday when gold prices rose by 1.74%, reaching near the historical high. 

Several positive factors boosted gold prices. Last Friday, Federal Reserve Chairman Powell’s dovish speech increased market expectations for a rate cut by the Fed in the first half of next year. The ceasefire agreement in Gaza collapsed, and Israel reported ground forces operating across various areas in the Gaza Strip, escalating concerns about the spread of conflict in the Middle East. 

On the technical front, gold prices oscillated upward, breaking through the previous high near $2075 and closing at $2071 per ounce. 

Technical Analysis: 

Today’s short-term strategy for gold suggests focusing on long positions during pullbacks, with short positions on rebounds as a secondary approach. 

• Key resistance levels to watch in the short term are around 2140-2150. 
• Key support levels to watch in the short term are around 2090-2064. 

WTI Crude Oil >>>

Crude oil plummeted to a two-week low, recording a six-week consecutive decline on the weekly chart. WTI crude oil closed down 2.70% at $75.57 per barrel, while Brent crude breached the $80 mark, ultimately closing down 1.6% at $79.1 per barrel. 

OPEC+ member countries reached a production reduction agreement, but it fell short of market expectations, leading to a more than 2% drop in oil prices.  

Earlier on Thursday, international oil prices surged over 2%, with WTI crude approaching the $80 mark. The decline in oil prices is attributed to the rebound of the U.S. dollar, an increase in U.S. inventories, and economic slowdowns in major Asian countries. 

On the technical front, crude oil experienced a retracement after attempting to push higher. The daily chart formed a bearish candle, with upward attempts pressured and falling back near the upper boundary of the exploration range around $79.55.  

The price failed to break above the upper limit of the range, indicating a lack of upward momentum, and the closing price retreated from the day’s high during the final trading session. 

Technical Analysis: 

Today’s crude oil trading strategy suggests focusing on 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 78.4-79.0. 
• Key support levels to monitor in the short term are around 75.0-75.7. 

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