Analysis of gold news: On Friday (December 22), the price of gold was trading around $2,048 per ounce. As the market continued to bet that the Federal Reserve would cut interest rates in early 2024, the price of gold remained within the trading range established in the past week. . Expectations for a rate cut in March remain despite other warnings from Fed officials Some Fed officials have warned that bets on an early rate cut by the Fed are exaggerated, but that hasn’t stopped expectations that the Fed could begin cutting interest rates as early as March 2024. . Fed funds futures showed traders saw a 67.5% chance of a 25 basis point rate cut in March, up from 62.7% the previous day. That comes despite warnings from some Fed officials that there remains uncertainty over the timing of a rate hike amid high U.S. inflation. The resilience of the U.S. economy may also give the Fed more room to keep interest rates higher for longer. Still, gold will benefit from a lower interest rate environment, given that higher interest rates drive up the opportunity cost of investing in gold. But rising risk appetite could curb gold’s gains, especially if the U.S. economy shows more signs of a soft landing. The situation is also expected to weaken safe-haven demand for gold. This week, investors will focus on November core PCE price index data due to be released on Friday. Investors can focus on this.
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 2065 first-line resistance, and on the bottom, focus on the 2035 first-line support.
Analysis of crude oil news: On Friday (December 22), crude oil prices were trading around US$74.30 per barrel in the Asian market. As Angola stated that it would withdraw from the Organization of the Petroleum Exporting Countries (OPEC), it triggered people’s approval of the producer group. Doubts over efforts to limit global supply to support prices. At the same time, tensions in the Middle East intensified, U.S. economic growth slowed and crude oil production increased, causing oil prices to fall by more than 2% on Thursday. However, as expectations for an interest rate cut by the Federal Reserve in March increased, the U.S. dollar index continued to weaken, helping oil prices recover their losses. Angola’s oil minister says it is not in the country’s interests to join OPEC. In recent months, a group of oil producers led by Saudi Arabia has been seeking support to deepen production cuts and boost oil prices. Angola’s output is about 1.1 million barrels per day, compared with 28 million barrels per day for the entire OPEC group. Angola’s withdrawal raises questions about OPEC’s cohesion and direction, even though it is one of the smallest producers and its exit is likely to have a limited impact on global supply. At a meeting in November, Angola protested OPEC’s decision to cut production quotas for 2024 to help support oil prices. Some economists said that the U.S. economic growth data for the third quarter was lowered. The data showed that the country’s gross domestic product increased by 4.9% from the previous quarter, lower than the previous estimate of 5.2%. Additionally, the manufacturing index fell to -10.5 in December, down from -5.9 the previous month, while jobless claims rose to 205,000 last week. The figures suggest economic activity may slow in the year-end quarter, hinting at lower energy demand and thus affecting crude oil markets.
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 76.0 at the top and the first-line support of 73.0 at the bottom.
The operation of gold and crude oil trading must be done carefully, the above strategies are recommended only for reference.
