On Monday, gold surged to a new record high of $2,634.74 per ounce, supported by bullish sentiment following a significant rate cut by the Federal Reserve and rising geopolitical tensions. However, after the dollar index stabilized, gold’s gains narrowed, closing up by about 0.24%.
Meanwhile, oil prices dipped slightly as concerns over demand intensified, driven by weak economic activity in the Eurozone and sluggish growth in major Asian economies.
Gold
Gold surged to a new record high of $2,634.74 per ounce on Monday, bolstered by market optimism following a substantial rate cut by the Federal Reserve and escalating geopolitical tensions. However, the dollar index later rebounded, limiting gold’s upward movement.
By the close, gold was priced at $2,628.33 per ounce, up by approximately 0.24%.
Several Federal Reserve officials indicated on Monday that last week’s 50-basis-point rate cut was aimed at maintaining a healthy balance in the economy, with inflation approaching the target level and unemployment aligning with price stability.
Kashkari, a voting member of the FOMC for 2026, stated that even after the rate cut, policy remains relatively tight, anticipating two more 25-basis-point cuts later this year.
Geopolitical risks also continued to support gold’s upward momentum. Reports indicated that the Israeli military launched large-scale strikes against Hezbollah targets in Lebanon, marking the fiercest conflict in nearly a year.
However, as the dollar stabilized and rebounded, gold’s gains were trimmed. Investors are watching for the Reserve Bank of Australia’s rate decision and other geopolitical developments.
Gold Technical Analysis:
On Monday, gold fluctuated at elevated levels, peaking at $2,631 during the afternoon before retreating to $2,613. Unlike the previous sessions, the upward momentum weakened, likely due to the prolonged rally exhausting buying interest and the dollar maintaining its strength.
Today’s Focus:
Today’s strategy favors buying on dips and selling on rallies.
- Key resistance: $2,635-$2,640
- Key support: $2,613-$2,608
Oil
Oil prices dipped slightly on Monday as weak Eurozone business activity and concerns over demand in major Asian economies weighed on the market. WTI crude for November delivery dropped $0.63 (0.9%) to $70.37 per barrel, while Brent crude for November fell $0.59 (0.8%) to settle at $73.90 per barrel.
A survey released on Monday revealed that business activity in the Eurozone unexpectedly contracted sharply in September, driven by sluggish services and an accelerating decline in manufacturing.
“The Eurozone is grinding to a halt,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “With the rapid decline in new and unfinished orders, it’s not hard to foresee further economic weakness.”
Worth noting, on Tuesday morning (September 24), the governor of the People’s Bank of China, Pan Gongsheng, announced plans to lower the reserve requirement ratio by 0.5 percentage points, injecting about 1 trillion yuan of long-term liquidity into financial markets. Further reductions could follow, potentially providing support for oil prices.
Oil Technical Analysis:
Oil remains in a broad consolidation after a recent multi-day rally from lows. The four-hour chart shows a continued rebound off the midline, with oil nearing resistance from a descending trendline. The short-term outlook hinges on whether oil can break through the triangle pattern, with the midline providing support for bulls and the descending trendline acting as resistance for bears.
Today’s Focus:
Today’s strategy favors selling on rallies and buying on dips.
- Key resistance: $71.8-$72.3
- Key support: $69.5-$69.0
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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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