Analysis of gold news: In the US market on Wednesday (December 27), the spot gold price was trading around US$2,064 per ounce. Gold resumed trading on Tuesday. Currently, the international gold price is trading above US$2,060 and maintains an upward trend. . The main driver of this move continues to be rising expectations of a rate cut by the Federal Reserve, increasing the appeal of gold prices. At the same time, the dollar and U.S. Treasury yields weakened, providing impetus for gold prices to rise. The dollar is trying to find a bottom, in part because inflation is cooling in the world’s largest economy. This trend could provide room for the Federal Reserve to cut interest rates next year. The U.S. price index fell for the first time in more than three and a half years from the previous month in November, and the annual inflation rate further fell below 3%. This data strengthened market expectations for the Federal Reserve to cut interest rates in March next year. The data comes a week after Federal Reserve policymakers opened the door to a rate cut in 2024 at their final policy meeting of the year, a move that weighed on the dollar. Gold prices resumed their gains in the new week as weaker-than-expected U.S. personal consumption expenditures data released on Friday confirmed the market’s pricing of dovish interest rate expectations.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the 2100 first-line resistance at the top and the 2070 first-line support at the bottom.
Analysis of crude oil news: Crude oil prices were trading around $74.80 per barrel in the U.S. market on Wednesday (December 27), as further attacks on ships in the Red Sea triggered concerns about shipping disruptions and hopes for interest rate cuts. In order to promote economic growth and fuel demand, oil prices rose by more than 2%, once reaching a new high of US$76.16 per barrel in nearly four weeks. Attacks on ships in the Red Sea and no easing of violence in Gaza, coupled with the U.S. military strike against Iraq, have further intensified the already tense situation and raised investor concerns about crude oil supplies. The rally, amid thin trading in some markets closed for the holidays, added to last week’s gains of about 3%, marking the biggest weekly gain since October. Analysts said expectations for interest rate cuts and conflicts in the Red Sea have led to a recent rebound in oil prices, although Maersk’s announcement to resume shipping routes via waterways has eased supply concerns to a certain extent. Despite concerns about the Middle East and ship diversions, actual supply has not yet been affected. Shipping lines have stopped sending ships through the Red Sea and have imposed surcharges on vessels that reroute. The Red Sea is connected to the Suez Canal, a major shipping route that accounts for about 12% of global trade. Economist Tim Snyder said: “We have problems in the Red Sea that are causing ships to go around the Horn of Africa, increasing prices and risk. This might not be a great start for 2024. Meanwhile, Israeli military chief Hertz Halevi said the war against Hamas in Gaza could last for months. Expectations for the Federal Reserve to cut interest rates next year also provided support for oil prices. Lower interest rates lower borrowing costs for consumers, boosting economic growth and oil demand.
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.
