Gold Market Analysis:
On Tuesday (September 24), gold prices continued to rise this week, buoyed by the Federal Reserve’s announcement of an interest rate cut on Wednesday. The Fed lowered its policy rate by 50 basis points, initiating an aggressive monetary easing cycle, making non-yielding gold more attractive. As investors seek to hedge against geopolitical uncertainties, demand for gold as a safe-haven asset has significantly increased.
This week, the market is focused on key U.S. economic indicators, including the Personal Consumption Expenditures (PCE) price index and the Purchasing Managers’ Index (PMI) for both manufacturing and services. Analysts predict that strong PMI data could support the dollar, which might influence gold prices. Conversely, weaker-than-expected data could put pressure on the dollar and further push gold prices higher. The upcoming PCE data is viewed as a crucial catalyst for gold prices, with the market expecting that if the core PCE index rises by 0.3% or more, it could benefit the dollar and curb gold’s upward momentum.
Several Federal Reserve policymakers indicated on Monday that the recent 50 basis point rate cut was intended to maintain what they believe is a healthy balance in the economy, with inflation moving towards target levels and unemployment close to levels consistent with stable prices. Today, there are relatively few economic data releases, so investors will pay attention to the Reserve Bank of Australia’s interest rate decision, the Conference Board’s Consumer Confidence Index for September, speeches from Federal Reserve officials, and news related to geopolitical developments.
Gold Strategy for Today: It is recommended to focus on buying on dips while considering selling on rebounds. Watch for resistance at the $2,673 level and support at the $2,643 level.
Crude Oil Market Analysis:
On Tuesday (September 24), international oil prices experienced slight upward fluctuations, with U.S. crude oil futures trading around $71.55 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 closed at $74.49 per barrel, down $0.39 (0.52%), while U.S. crude futures settled at $71.92 per barrel, down $0.03 (0.4%). Signs of an economic slowdown in major commodity-consuming Asian countries have limited oil prices. 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 rebounded. Overall, the fundamental outlook seems to support further upward movement in oil prices.
Today, investors should focus on the upcoming manufacturing PMI data for September from the U.S. and other Western countries.
Crude Oil Strategy for Today: It is recommended to focus on selling on rebounds while considering buying on dips. Watch for resistance at the $72.6 level and support at the $69.9 level.
Caution is advised, and the strategies are for reference only.
