Analysis of gold news: Gold prices were trading around $2,030 per ounce in the U.S. market on Wednesday (December 6) as the labor market slowed further, fueling speculation that the Federal Reserve will be able to cut interest rates next year to prevent an economic recession. , U.S. Treasury bonds resumed their gains. The 10-year Treasury yield briefly topped 5% in October but fell below 4.2% on Tuesday as data showed job openings hit their lowest level since 2021. However, concerns about anticipating Fed policy easing too quickly have surfaced, underscoring the risks for traders hoping for a shift in markets. It’s a bet that could pay off handsomely if a rate cut does happen, but one that could backfire if policymakers choose to keep borrowing costs higher for longer. For now, the update on employment data is the dominant factor. U.S. Treasuries extended bullish price action. The current negative factor in the gold market is the rebound of the U.S. dollar index. As the market expects the Federal Reserve to cut interest rates next year, the yield of the 10-year Treasury bond falls and its price rises. Lower long-term yields typically prompt investors to abandon bonds and move toward precious metals. Rates have fallen as investors hope the Federal Reserve will cut interest rates in 2024, while a weaker dollar has provided some support over the past eight weeks. A key question for bullish gold investors is whether these trends can continue. The U.S. economy is still growing and there are few signs that the Federal Reserve is about to consider cutting interest rates, which could dampen recent enthusiasm for gold.
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 2042 first-line resistance, and on the bottom, focus on the 2014 first-line support.
Analysis of crude oil news: In the US market on Wednesday (December 6), crude oil prices were trading around US$71.30 per barrel. Oil prices closed down for the fourth consecutive day. API data released in the early morning showed that crude oil and refined products were fully stocked, especially It was Cushing inventories that increased significantly. Oil prices plunged slightly after the data was released. The continued rise in inventories continues to strengthen the real concerns about oversupply pressure in the crude oil market. In addition, Saudi Arabia continues to lower its official price for sales to Asia, which itself is seen as a signal of weakening supply and demand in the crude oil market. Investors’ outlook on the crude oil market has not improved after the OPEC meeting. On the contrary, pessimistic expectations about the diminishing effect of OPEC’s production cuts have increased. How to re-establish investor confidence in OPEC is a major challenge facing OPEC. Many countries, including Iraq and Kazakhstan, claimed that production data declined in November, but the improvement in market expectations was very limited. The fact that investors are focusing on pessimistic news is itself an objective response to the current market situation. Following Saudi Arabia, Russia It also tried to emphasize strengthening the implementation of OPEC’s production cuts to boost market confidence, but judging from the market’s reaction after its statement, it obviously did not dispel investor doubts. The actual effect of OPEC’s production cuts will not be seen until January. Next, you can pay attention to the inventory report and the monthly reports of the three major institutions on the expected adjustments to the supply and demand levels of the crude oil market after OPEC voluntarily cut production. The financial market has experienced significant turbulence this week, with various assets generally declining and market sentiment relatively pessimistic, further increasing investors’ bearish expectations for the future of oil prices. Although attempts have been made to organize a rebound in the past two days, they have all failed. The bearish side clearly has the upper hand in the market performance. This performance also continues to undermine market confidence. Oil prices continue to fluctuate downwards, and the weak pattern continues, and we are still exploring. Lower level support, participate cautiously, and pay attention to risk control.
Today’s crude oil strategy: It is recommended to focus on rebounding from high altitudes, supplemented by callbacks to lows. Focus on the 71.3 first-line resistance at the top and the 68.6 first-line support at the bottom.
The operation of gold and crude oil must be done carefully, the above strategies are recommended only for reference.
