
On Tuesday, US consumer confidence saw its largest drop in three years, increasing market expectations for a significant Fed rate cut in November. The US dollar index posted its largest single-day drop in almost a month, pushing gold to a new record high for the third consecutive day, reaching $2,664.27 per ounce before settling at $2,656.67.
Meanwhile, escalating conflict in the Middle East raised concerns about supply disruptions, lifting oil prices, with both WTI and Brent crude rising nearly 2%.
Gold
Due to the sharp decline in US consumer confidence, market expectations of a significant Fed rate cut in November increased. The US dollar index fell 0.58% to 100.35, marking its largest percentage drop since August 23, and hitting a 14-month low. Gold surged to a new all-time high of $2,664.27 per ounce before closing at $2,656.67, up 1.08%.
The Conference Board reported that concerns about employment and business conditions caused a sharp decline in consumer sentiment in September. The US consumer confidence index fell from 105.6 in August to 98.7 in September, marking the largest monthly drop since August 2021.
Following the data release, expectations for a 50 basis point Fed rate cut in November rose. The dollar’s decline provided additional support for gold, which has now fallen for three consecutive weeks.
Middle East tensions also boosted gold prices. Reports indicate that Israel conducted airstrikes on Beirut, killing a senior Hezbollah commander, raising concerns of a wider conflict. Lebanon claimed that only the US could help broker a peace agreement.
Today, investors should watch for US new home sales data and remarks from Fed Governor Kugler, along with ongoing geopolitical developments.
Gold Technical Analysis:
Gold experienced some consolidation yesterday, finding support around $2,622 and rising to a high of $2,639. Despite the continued uptrend, the strength of the rally has weakened slightly, signaling possible short-term consolidation. Traders should monitor key resistance and support levels closely.

Today’s Focus:
The recommended strategy is to prioritize buying on pullbacks and selling into resistance.
- Upper Resistance: Focus on the $2,660–$2,670 range.
- Lower Support: Focus on the $2,630–$2,620 range.
Oil
On Tuesday, rising geopolitical tensions in the Middle East fueled concerns over potential supply disruptions, pushing oil prices higher. WTI crude rose $1.19 (1.7%) to settle at $71.56 per barrel, while Brent crude gained $1.27 (1.7%) to close at $75.17 per barrel, marking its highest settlement since September 2.
Escalating conflict in the Middle East, particularly Israel’s airstrike in Beirut that killed a Hezbollah commander, raised fears of a wider war in the region. Additionally, China’s financial regulators announced a series of stimulus measures, helping to ease recent bearish sentiment in the oil market.
The Organization of the Petroleum Exporting Countries (OPEC) also raised its long-term global oil demand outlook, citing increased demand in India, Africa, and the Middle East, along with a slower transition to electric vehicles and cleaner fuels.
API data released on Tuesday showed significant declines in both crude oil and gasoline inventories, which could provide further upward momentum for oil prices. Investors should watch for the US Energy Information Administration’s (EIA) inventory report and any updates on geopolitical tensions.
Oil Technical Analysis:
Oil saw a rebound in prices yesterday, with support at $70.40 and a peak near $72.40. After a daily close below key support levels, there was a continuation of the bullish momentum.
On the weekly chart, the next significant resistance lies at the 10-week moving average around $73.30, with additional resistance near the September high of $74.30.
Meanwhile, downside support sits near the 4-hour Bollinger Band at $70.30, with further support near $69.80. A break below this level could signal a shift back to a bearish trend.

Today’s Focus:
The recommended strategy is to prioritize buying on pullbacks and selling into resistance.
- Upper Resistance: Focus on the $72.50–$73.00 range.
- Lower Support: Focus on the $70.00–$69.50 range.
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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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