Gold Market Analysis
On Tuesday (January 7) during the U.S. trading session, spot gold surged but faced resistance and pulled back, currently trading around $2,648 per ounce. On Monday, gold prices saw a slight decline as the Federal Reserve hinted at slowing the pace of rate cuts in 2025. U.S. Treasury yields rose, reaching the highest levels since May, pushing gold prices to a three-day low of $2,614.69 per ounce during the session.
However, conflicting reports about how aggressive the tariff policies of U.S. President-elect Donald Trump will be caused the dollar index to drop to its lowest in more than a week. This allowed gold prices to rebound by the end of the session, closing at $2,635.87 per ounce.
Key events to watch today:
- U.S. November Trade Balance,
- Eurozone December CPI data,
- U.S. December ISM Non-Manufacturing PMI,
- U.S. November JOLTs Job Openings.
Additionally, keep an eye on remarks from Richmond Fed President Thomas Barkin, geopolitical news, and updates regarding Trump. On Wednesday, the ADP Employment Report and the Federal Reserve’s latest policy meeting minutes will be released, potentially impacting market expectations.
Gold Strategy for Today:
- Primary Approach: Focus on buying during pullbacks.
- Secondary Approach: Consider selling during rebounds.
- Key Levels:
- Resistance: $2,663
- Support: $2,633
Crude Oil Market Analysis
On Tuesday (January 7) during the U.S. trading session, U.S. crude oil prices fluctuated in a narrow upward range. After a continuous rebound, crude oil faced resistance near the descending trend line, suggesting a need for a technical correction.
- Technical Perspective: Indicators remain in bullish territory, awaiting stabilization in the short term.
- Fundamentals:
- A strong dollar attracted market attention, pressuring oil prices.
- Geopolitical tensions continue to provide support.
- OPEC’s delay in increasing production, coupled with Saudi Arabia’s decision to raise oil prices for Asian buyers in February, boosted prices.
- However, expectations for Federal Reserve rate cuts remain unchanged, limiting support for oil prices in the short term.
This Week’s Focus: The first U.S. non-farm payroll (NFP) data for 2025 will be released, and any shifts in expectations for Federal Reserve rate cuts could heighten bullish sentiment for oil.
Crude Oil Strategy for Today:
- Primary Approach: Focus on selling during rebounds.
- Secondary Approach: Consider buying during pullbacks.
- Key Levels:
- Resistance: $75.6
- Support: $72.6
Note: Exercise caution when trading. These strategies are for reference only.