Analysis of gold news: During the U.S. market on Wednesday (November 22), the gold market performed dull after the latest employment data showed an unexpected improvement in the U.S. labor market. The gold market sold off slightly on better-than-expected jobs data and the Federal Reserve said it needed to see some weakness in the U.S. labor market before starting to consider possible interest rate cuts. Gold prices fell back from above $2,003 before the data was released and are now at $1,990.17 an ounce. The U.S. Labor Department said the Federal Reserve has raised its benchmark interest rate 11 times since March 2022 to slow economic growth and curb inflation that hit a four-year high last year. The job market and economic growth have remained surprisingly resilient, defying predictions that the economy would slip into recession this year. The number of Americans applying for unemployment benefits fell sharply last week, a sign that the U.S. job market remains resilient despite rising interest rates.
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 2005 first-line resistance, and on the bottom, focus on the 1978 first-line support.
Analysis of crude oil news: In the U.S. market on Wednesday (November 22), crude oil prices were trading around US$76.76 per ounce. After rising for two consecutive trading days, oil prices took a breather on Tuesday. The caution comes ahead of the meeting, where the producer group is likely to discuss deepening production cuts amid slowing global economic growth. Industry data on U.S. crude supplies showed crude inventories rising. Oil prices have fallen about 16% since the end of September as crude output in the United States, the world’s top producer, remains at record highs and amid concerns about growing demand and a slowing economy. Oil prices were flat in a very narrow trading range on Tuesday as jitters mounted ahead of a weekend OPEC meeting. With the meeting set to take place on November 26, there appears to be talk in the market that Saudi Arabia may extend and expand the amount and duration of its production cuts. Refineries are struggling and inventories are building, triggering lower demand, lower profits and lower supply. Prices pared losses late in the session, with one trading day left before the U.S. Thanksgiving holiday on Thursday, which typically results in lower oil trading volumes. Support was provided by growing expectations that OPEC will take some action at its meeting this weekend. Investors don’t want to hold large short positions at the end of the week. Given expectations, we may see Saudi Arabia extend additional voluntary production cuts until at least 2024. The head of the International Energy Agency’s oil markets and industry department said earlier on Tuesday that the global oil market will still experience a slight oversupply in 2024, even if OPEC extends production cuts until next year.
Today’s crude oil strategy: It is recommended to focus on rebounding from high altitudes, supplemented by callbacks to lows. Focus on the first-line resistance of 77.4 at the top and the first-line support of 75.0 at the bottom.
The operation of gold and crude oil trading must be done carefully, the above strategies are recommended only for reference.
