Analysis of gold news: Entering the U.S. market on Monday (December 11), international gold maintained a downward trend. It is now near the 1980 mark again and has completely fallen below $2,000 within the day. Last Friday’s strong non-farm payrolls report dealt a major blow to gold’s short-term prospects. The Fed’s expectations of interest rate cuts have weakened. This week is an extremely critical week for gold. The market will usher in decisions from many major central banks led by the Federal Reserve. In addition, the United States Key economic data such as CPI, PPI and PMI will be released. Gold prices fell on Monday as the dollar steadied as investors looked ahead to this week’s interest rate meetings from major central banks and the release of U.S. inflation data for further clarity on interest rate trends. Spot gold continued last Friday’s decline, falling below $2,000 again during the day, hitting the lowest level of 1,980, and falling by more than $20 during the day. Gold has erased all of its gains over the past two weeks after a dramatic reversal from its surge to all-time highs. Such reversals usually bode poorly because they occur near tops or bottoms, but long-term fundamentals still favor further gains. In fact, expectations of an upcoming rate cutting cycle are a tailwind for gold as it will push real yields lower. The change in gold’s short-term outlook comes as last Friday’s non-farm payrolls report exceeded expectations across the board, with the unemployment rate falling to 3.7% from the previous 3.9% and monthly wage growth exceeding expectations.
Today’s gold strategy sharing: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the first-line resistance of 1995 at the top and the first-line support of 1970 at the bottom.
Analysis of crude oil news: In the US market on Monday (December 11), crude oil prices were trading around US$71.20 per barrel. Oil prices rose slightly on Monday, continuing the second trading day’s gains, as the United States’ efforts to replenish strategic reserves provided a Some support, although concerns about a crude oil supply glut and weak fuel demand growth next year remain. Recent price weakness has attracted demand from the United States, which has sought up to 3 million barrels of crude for the Strategic Petroleum Reserve (SPR) for delivery in March 2024. Some analysts said: We know that the Biden administration is seeking to supplement SPR in the market, which will provide support. Although the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC, have pledged to cut production by 2.2 million barrels per day in the first quarter, investors remain skeptical that supply will fall, with output growth from non-OPEC countries expected to lead to lower oil production. There will be a glut of supply next year. Inventory reduction is expected to be 700,000 barrels per day in the first half of the year, but only 140,000 barrels per day for the full year. This week, investors are watching interest rate policy guidance from meetings of four major central banks including the Federal Reserve, as well as U.S. inflation data, to understand its impact on the global economy and oil demand.
Today’s crude oil strategy: It is recommended to focus on rebounding from high altitudes, supplemented by low and long corrections. Focus on the first-line resistance of 73.0 at the top and the first-line support of 70.2 at the bottom.
The operation of gold and crude oil trading must be done carefully, the above strategies are recommended only for reference.
