
Gold
On Tuesday, spot gold experienced its fifth consecutive drop, pressured by a cooling of expectations for a significant Fed rate cut in November and profit-taking by traders.
During the session, prices plunged nearly $50, approaching the $2,600 mark. By the close, gold fell 0.79%, settling at $2,621.68 per ounce.
Data released by the US showed that the trade deficit in August narrowed by 10.8% to $70.4 billion, the smallest in five months, with exports up 2.0% to a record $271.8 billion.
The smaller-than-expected deficit, along with strong labor market data, indicated a resilient US economy in the third quarter, reducing the likelihood of a 50-basis-point Fed rate cut.
US Treasury yields continued to rise on Tuesday, adding pressure to gold prices. The 10-year Treasury yield closed above 4% for the fifth straight day, peaking at 4.057%, the highest in nearly 10 weeks. Meanwhile, the 30-year yield reached 4.342%, a high not seen since late July.
On the geopolitical front, concerns of a full-scale war in the Middle East eased as Hezbollah supported efforts for a ceasefire. This reduced demand for gold as a safe-haven asset.
Investors are advised to monitor geopolitical developments and look out for the minutes from the Fed’s policy meeting, to be released early Thursday, for clues on future monetary policy.
Gold Technical Analysis:
Gold has broken through its ascending channel on the daily chart and remains weak, with both higher highs and lower lows showing further downside potential. The next key level to watch is around $2,623 to see if the price breaks lower.

Today’s Focus:
Strategy: Favor selling on rallies, with a secondary approach to buy on dips.
- Key resistance levels: $2,650–$2,660
- Key support levels: $2,615–$2,600
Oil
On Tuesday, oil prices fell sharply by more than 4%, marking the largest single-day drop in nearly a month, as Hezbollah and Israel appeared to be moving toward a ceasefire, and US crude inventories were expected to rise.
WTI crude futures dropped $3.57, or 4.63%, to settle at $73.57 per barrel, while Brent crude fell $3.75, or 4.63%, to $77.18 per barrel.
According to CNN, a senior official from Lebanon’s Hezbollah stated on Tuesday that the group supports efforts to achieve a ceasefire in Lebanon without requiring a halt to the conflict in Gaza. This was the first time Hezbollah publicly supported such a move.
US President Joe Biden has urged Israel to refrain from attacking Iran’s nuclear facilities or oil infrastructure, fearing such actions could spark a broader conflict, drawing Washington into the fray and driving up energy prices, which would harm the global economy.
Additionally, the American Petroleum Institute (API) reported a surprising rise in crude inventories, which increased by 10.96 million barrels in the week ending October 4, far exceeding market expectations and further weighing on oil prices.
Investors are closely watching the official oil inventory report from the Energy Information Administration (EIA) due Wednesday.
Oil Technical Analysis:
Oil showed signs of a pullback on Tuesday after reaching $78.4, gradually retreating to around $73.8. On the daily chart, a bearish reversal followed Monday’s strong gains, signaling a potential retracement.
The 4-hour Bollinger Bands are tightening, and SAR indicators have appeared at higher levels, suggesting the price may not hold above $77.6. Further upward attempts may present selling opportunities.

Today’s Focus:
Strategy: Prioritize short positions on rallies, with secondary buys on pullbacks.
- Key resistance levels: $75.8–$76.8
- Key support levels: $73.0–$72.3
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
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