Market Recap
On Thursday, spot gold saw sharp intraday swings of nearly 2%, hitting a fresh record before closing slightly lower. Meanwhile, crude oil prices rebounded from a 16-week low, breaking a four-day losing streak as traders weighed supply risks and OPEC+ expectations.
Gold
Spot gold surged to a record high of $3,896.60/oz before quickly reversing, ending the day down slightly.
The volatility was triggered by hawkish comments from Dallas Fed President Lorie Logan, who called the September rate cut an “insurance” move and urged caution on further easing. This cooled hopes for an aggressive Fed rate-cut cycle.
Traders still see a 99% chance of another cut in October, but optimism has softened. Market strategist Bob Haberkorn noted that profit-taking after Logan’s remarks sent prices lower.
Technical levels: Gold opened at $3,866.4/oz, dipped to $3,852.1/oz, hit a record $3,897.3/oz, dropped to $3,819/oz, then rebounded to close at $3,854.7/oz, forming a long-legged doji candlestick.
Today’s Outlook:
- Strategy: Sell on rallies, buy on dips
- Resistance: $3,885 – $3,895
- Support: $3,845 – $3,835
Crude Oil
WTI crude rose to $62.20/bbl, snapping a four-day decline, while Brent crude added 0.65% to $65.78/bbl.
The rebound was supported by speculation over tighter restrictions on Russian oil and increased Ukrainian drone strikes on refineries, which could limit supply. However, expectations that OPEC+ may raise output next month capped gains.
Nissan Securities’ strategist Hiroyuki Kikukawa highlighted that strong buying emerged as WTI neared the $60 support, with geopolitical tensions adding further support.
Today’s Outlook:
- Strategy: Buy on dips, sell on rebounds
- Resistance: $63.0 – $64.0
- Support: $61.0 – $60.0
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Disclaimer
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