Gold news analysis: Gold prices fell on Wednesday due to caution ahead of the Federal Open Market Committee (FOMC) meeting minutes and important U.S. data, namely the Institute for Supply Management (ISM) manufacturing PMI and JOLTS job openings data in December. Precious metals are under selling pressure as investors reconsider bets on a rate cut by the Federal Reserve in March. A lack of significant discussion about Fed policymakers cutting interest rates in the FOMC minutes would undermine gold’s near-term appeal and support the dollar and Treasury yields. In terms of economic data, the ISM PMI is expected to show that the U.S. manufacturing industry has maintained a contraction trajectory for 14 consecutive months. At the same time, more job postings from U.S. employers will indicate steady labor demand. Precious metals are under selling pressure as investors reconsider bets on a rate cut by the Federal Reserve in March. A lack of significant discussion about Fed policymakers cutting interest rates in the FOMC minutes would undermine gold’s near-term appeal and support the dollar and Treasury yields.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. At the top, focus on the 2055 first-line resistance, and on the bottom, focus on the 2030 first-line support.
Analysis of crude oil news: In the US market on Wednesday (January 3), crude oil prices were trading around US$72.40 per barrel. Judging from the latest EIA report, the total crude oil inventory was 796 million barrels, which was higher than that in September. The low was 777 million barrels. In a very short period of time, the price fell from a low of $90 to a high of $60. Oil production held steady at 13.2 million barrels per day, up from 1.25 million barrels per day earlier this year. Data from an environmental impact assessment report by the Federation of Electronic Industries shows that during the statistical period, the United States increased crude oil production by an average of 1 million barrels per day in the four weeks, which exactly offset OPEC’s recent production cuts. A few weeks ago, OPEC decided to cut production further, which had no impact on the market. With the arrival of peak crude oil consumption in summer, the market reaction may become different. On the economic front, the Fed may start cutting interest rates in the first quarter if it believes inflation has balanced, which would be good for commodities. In the long term, there is a risk of global economic recession, and the oil market may face a serious lack of demand. This puts oil pricing on the back burner and oil prices could fall significantly. In the worst-case scenario, growth will weaken, but certainly not a catastrophic collapse. Generally speaking, we are more inclined to believe that the next stage of oil price reversal is imminent. Some degree of price support is expected, followed by a more bullish market.
Today’s crude oil strategy: It is recommended to focus on rebounding high, supplemented by callbacks low and long. Focus on the first-line resistance of 74.6 at the top and the first-line support of 71.6 at the bottom.
The operation of gold and crude oil trading must be done carefully, the above strategies are recommended only for reference.
