Powell’s hawkish speech boosted the U.S. dollar and Treasury yields, with a limited impact on gold, resulting in a modest rise in gold prices.  

Federal Reserve Chairman Jerome Powell’s hints at potential future interest rate hikes shook hopes of strong demand in the stock and oil markets, hindering oil price rebound, causing a slight uptick. 

Gold >> 

On Thursday, spot gold edged up by 0.41% or $8.04 per ounce, closing at $1958.20 per ounce. December gold futures rose by 0.61%, settling at $1969.80 per ounce. 

Despite a decrease in geopolitical concerns in the Middle East, suppressing safe-haven demand for gold, the weakening momentum of the US dollar and lingering low U.S. bond yields created short-term downward pressure on gold prices, prompting a rebound adjustment demand.  

The speech by Federal Reserve Chairman Powell is expected to be moderately hawkish, potentially providing opportunities for bulls. 

Technically, gold exhibited narrow-ranging consolidation around the $1945-47 range after a brief dip, with a strong rebound breaking above the range during the U.S. session.  

Although suppressed around the $1954 level during the Asia-Europe session, the price swiftly fell below the $1945 support, entering a sideways consolidation. In the late U.S. session, the overall price stabilized around the $1945 level before a robust bottom exploration, surging through the $1960 level and closing strongly near $1965. 

Technical Analysis: 

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

• Key resistance levels to watch in the short term are around 1970-1980. 
• Key support levels to watch in the short term are around 1948-1940. 

WTI Crude Oil >> 

On Thursday, WTI crude oil futures faced resistance in their rebound. Intraday, prices briefly surged by 2% to $77.09 per barrel, but the gains narrowed towards the closing, settling at $75.74 per barrel, a modest increase of $0.41 per barrel or 0.54%. Brent crude oil futures closed at $80.01 per barrel, rising by $0.47 per barrel or 0.59%. 

Data from China and the United States indicates a decrease in crude oil demand. According to the U.S. Energy Information Administration (EIA), as of August, U.S. crude oil production reached a historic high, exceeding 404 million barrels, breaking the previous record of 402 million barrels set in December 2019.  

Additionally, both OPEC and the International Energy Agency (IEA) are expected to provide their assessments of the oil demand and supply fundamentals next week. OPEC is also scheduled to hold a meeting at the end of this month to discuss production policies for 2024. 

During the Asia-Europe session, crude oil experienced a rebound, relying on the $75.3 level, but faced resistance and pulled back after attempting to breach the $76 level in the afternoon.  

In the late U.S. session, there were two retracements, finding support around the $75.7 level, leading to a rebound and continuation of the upward movement. After midnight, the overall price accelerated, breaking through the $77.1 resistance but retraced to close below it. 

Technical Analysis: 

Today’s crude oil trading strategy suggests prioritizing short positions on rebounds, with long positions on pullbacks as a secondary option. 

• Key resistance levels to monitor in the short term are around 77.4-78. 
• Key support levels to monitor in the short term are around 74.6-75. 

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