Gold Market Analysis:
On Monday, spot gold reached an all-time high of $2,634.66 per ounce, finally stabilizing above $2,620, marking an impressive increase of over 27% year-to-date. This performance positions gold to potentially achieve its largest annual gain since 2010. Last week, the Federal Reserve cut interest rates by 50 basis points, officially initiating a new phase of monetary easing. The market anticipates another 50 basis point rate cut by the end of this year and an additional 100 basis points cut in 2024. Officials’ expectations and attitudes toward rate cuts have become focal points for the market.
Additionally, escalating conflict between Israel and Lebanon has heightened geopolitical risks, further fueling demand for gold as a safe-haven asset. This week, market participants will closely watch speeches from Federal Reserve officials and the U.S. PCE inflation data scheduled for release on Friday for more policy clues. In the short term, if gold can maintain its position above $2,600, there remains potential for further upward movement.
Gold Strategy for Today: It is recommended to focus on buying on dips while considering selling on rebounds. Watch for resistance at the $2,643 level and support at the $2,613 level.
Crude Oil Market Analysis:
On Monday (September 23), international oil prices showed slight fluctuations, with the U.S. crude oil futures trading around $70.75 per barrel. Oil prices were narrowly range-bound last Friday but recorded gains for the second consecutive week, supported by the U.S. rate cut and declining U.S. supplies. Brent crude futures settled at $74.49 per barrel, down $0.39 (0.52%), while U.S. crude futures closed at $71.92 per barrel, down $0.03 (0.4%). Signs of economic slowdown in major commodity-consuming Asian countries have kept oil prices in check. However, both benchmarks increased by over 4% last week, marking two consecutive weeks of gains. After Brent crude fell below $69 for the first time in nearly three years on September 10, prices have since rebounded. Overall, the fundamental outlook seems to support further upward movement in oil prices.
Today’s market will also see the release of manufacturing PMI data for September from the U.S. and other Western countries, which investors should pay close attention to.
Crude Oil Strategy for Today: It is recommended to focus on selling on rebounds while considering buying on dips. Watch for resistance at the $72.0 level and support at the $69.0 level.
Caution is advised, and the strategies are for reference only.
