Analysis of gold news: In the US market on Monday (October 16), the price of gold was trading around $1,920 per ounce. Gold analysts pointed out that although gold prices fell back in the short term during the day, geopolitical tensions may limit gold prices from falling further. Driven by safe-haven demand, gold prices rose more than 4% last week. Movements in geopolitics and bond markets are likely to drive gold prices this week. Gold prices may encounter strong resistance in the $1,930/oz area. Although gold prices surged 3% in the last trading session as investors turned to safe-haven gold due to the fierce war between Israel and Hamas, gold prices are currently lower due to technical selling. Meanwhile, the dollar edged lower on Monday but remained near one-week highs as fragile sentiment against the backdrop of conflict in the Middle East supported safe-haven demand for the greenback. The dollar index fell 0.08% to 106.47, but remained near the high hit on Friday, with investors also awaiting a speech from Federal Reserve Chairman Jerome Powell later this week for clues on the outlook for U.S. interest rates.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the first-line resistance of 1928 at the top and the first-line support of 1900 at the bottom.
Analysis of crude oil news: In the US market on Monday (October 16), crude oil prices were trading around US$86.70 per barrel. Crude oil markets rallied sharply last week and continued a series of wild swings. Investors need to be prepared for a more volatile market this week. Taking WTI (U.S. Oil) as an example, the price has risen sharply, testing the upper limit of the recent consolidation range. This observed upward trend can be attributed to a variety of factors, such as concerns about escalating violence in the Middle East or the possibility of supply shrinkage. However, it must be recognized that this market is highly volatile and position sizing needs to be adjusted carefully. The key price level to watch is the $87 area. A decisive breakout after this point could cause the market to rise sharply. Notably, the area between the 200-day EMA and the 50-day EMA provides a lot of support. Popular trends are often confirmed in this area, making it a key area to monitor. On the other hand, if the market falls below the 200-day moving average, it will be a clear bearish signal. Despite continued volatility, caution is advised, especially given the impact of geopolitical factors on oil prices. Traders need to remain vigilant.
Today’s crude oil strategy: It is recommended to focus on rebounding high, supplemented by callbacks low and long. Focus on the 86.4 first-line resistance at the top and the 83.8 first-line support at the bottom.
The operation of gold and crude oil trading must be done carefully, the above strategies are recommended only for reference.
