Analysis of gold news: Spot gold recorded a slight increase last week, but the overall fluctuation was not large. At the close of last Friday (September 15), spot gold closed at $1,923.64 per ounce, up $13.02 per ounce (or 0.68%), with a weekly increase of 0.26%. Gold prices continued their weakness at the beginning of the week, approaching $1,900. A corrective rebound began on Thursday. The New York Fed manufacturing index released on Friday showed an unexpectedly strong performance in the U.S. manufacturing industry, causing gold prices to rise sharply, once touching $1,930. Gold also experienced a rally triggered by the European Central Bank’s decision. Despite raising rates by 25 basis points to a record high, signs that this could be the last hike in the current tightening cycle sparked market action that pushed the euro and euro zone yields lower. This had a positive impact on gold and helped it stay above $1,900. In the coming week, the U.S. will release a number of key housing market data, including MBA mortgage applications, housing starts and building permits, and the Philadelphia Fed manufacturing survey. But all eyes will be on the Federal Reserve’s interest rate decision on Wednesday, with the market almost fully pricing in expectations of no action.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the 1940 first-line resistance at the top and the 1913 first-line support at the bottom.
Crude oil news analysis: Last Friday (September 15), in late trading in the U.S. market, international crude oil prices closed at around US$91.18/barrel. Oil prices ushered in a third week of rise, mainly due to production cuts in Saudi Arabia and Supply tensions triggered by optimism that China’s economy is finally on the mend. This month, Saudi Arabia, with the support of OPEC partners such as Russia, extended its 1.3 million barrels per day production cut plan until the end of the year, accelerating the reduction of global inventories. Supply issues have pushed benchmark prices for Brent and U.S. West Texas Intermediate (WTI) crude to their highest levels since November. The economic development of China, the world’s largest oil importer, will be crucial to the growth of oil demand during the rest of this year. China’s economic recovery from the epidemic has been sluggish, raising concerns about demand, but industrial output and retail sales both grew faster than expected in August. Current data shows oil refinery throughput is up nearly a fifth from a year ago as processors maintained high operating rates to meet high global demand for petroleum products. There are also signs of optimism on borrowing costs. Although overall U.S. inflation rose in August, core inflation eased, signaling that the Federal Reserve may pause raising interest rates next week. However, the U.S. central bank may leave open the possibility of a final round of interest rate hikes in November. The European Central Bank raised interest rates for the tenth time in a row this week but signaled it might stop there. Some analysts said: On Wall Street, betting on oil is becoming the most popular trade. No one doubts that the OPEC (oil production) decision late last month will keep the oil market very tight in the fourth quarter.
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 91.7 at the top and the first-line support of 89.2 at the bottom.
The execution of gold and crude oil trading must be done carefully, the above strategies are recommended only for reference.
