On Monday, the U.S. dollar rebounded, putting pressure on the price of gold. Currently, the price of gold is fluctuating around USD 2020. Tightness in crude oil supply has boosted oil prices by 2%, reaching a new high in nearly four weeks. 

Gold >>  

On Monday, due to the market’s expectation of a delayed interest rate cut by the Federal Reserve, the U.S. dollar rebounded, putting pressure on the price of gold. The spot gold price fell by 0.06% to around USD 2028 per ounce, currently fluctuating around USD 2020. 

The decline in the price of gold is attributed to the market lowering its expectations for a swift interest rate cut by the Federal Reserve. Investor sentiment shifted ahead of key economic data in the United States and major central bank policy meetings later in the week.  

The market is closely monitoring a series of key events this Monday, such as interest rate decisions by the Bank of Japan and the European Central Bank, the release of U.S. GDP and PCE price index, and economic data during the ‘quiet period’ of Federal Reserve officials, seeking more clues on potential interest rate cuts. 

On the technical side, gold faced overall pressure at the 2032 level, experiencing resistance and falling back with oscillations breaking through the bottom and closing. In the Asian and European sessions, prices slightly rebounded, piercing through the 2032 level before facing pressure and quickly falling.  

In the afternoon, there was further downward oscillation, piercing through the 2020 level and reaching around 2019, entering a sideways oscillation.  

In the late U.S. session, prices quickly rose to the 2030 level before once again facing pressure, falling with oscillations and breaking through the bottom. In the early morning, gold prices pierced through the 2017 level, rebounding weakly and closing. 

Technical Analysis: 

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

• Key resistance levels to watch in the short term are around 2035-2040. 
• Key support levels to watch in the short term are around 2015-2010. 

WTI Crude Oil >>  

On Monday, extreme cold weather continued to hinder crude oil production in the United States. Following a drone attack by Ukraine on Russia’s Novatek company and concerns about global energy supply, oil prices rose by approximately 2%.  

WTI crude oil closed up by 2.42%, increasing by USD 1.78 per barrel to settle at USD 75.19 per barrel. Intraday, it reached a high of USD 75.43 per barrel, the highest since December 27.  

Brent crude oil reached USD 80 per barrel for the first time since January 12, closing at USD 80.06 per barrel, up USD 1.50, or 1.9%, with an intraday high increase of 2.19%.  

Refineries along the coast of the Gulf of Mexico in the United States are gradually recovering from the impact of the winter storm Gerri. Last week, Winter Storm Gerri destroyed 15% of the crude oil processing capacity in that region.  

On the technical side, oil prices experienced initial suppression followed by a rebound. In the Asian and European sessions, there was a slight pullback, testing and stabilizing around the 72.5 level, followed by oscillations and a recovery.  

During the U.S. session, there was repeated fluctuation and consolidation near the 73.7 level before entering a sideways oscillation. Eventually, in the late U.S. session, there was a second pullback and stabilization around the 73.2 level, leading to a strong bullish rally breaking through the high. 

Technical Analysis: 

Today’s crude oil trading strategy suggests prioritizing 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 75.0-76.0. 
• Key support levels to monitor in the short term are around 72.0-71.0. 

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