Analysis of gold news: The U.S. dollar index rose all the way on Tuesday (September 5), reaching a maximum of 104.85; spot gold fell weakly and fell below the 1930 mark. As of press time, spot gold was trading at $1,926.80 per ounce, down 0.57% on the day. As global market risk sentiment was low and disappointing economic data from China and Europe wiped out yesterday’s optimism, European stocks expanded their losses, U.S. stock futures fell, the euro tumbled to nearly three-month lows, and the U.S. dollar and U.S. bond yields both rebound. The dollar had risen for seven consecutive weeks, its longest gain since 2018. The U.S. dollar index fell short-term after the always hawkish Federal Reserve Board Director Waller said that there is no urgency to take additional interest rate hikes immediately. Job growth accelerated in August, but the unemployment rate edged up to 3.8% and wage gains were limited. Those nuances have traders all but certain the Fed will pause on raising interest rates, leaving them debating the timing and extent of future adjustments. While labor conditions have eased and economic data points to a “soft landing,” expectations of a sharp rate cut have faded. If the Fed delays cutting interest rates, gold’s appeal as a zero-coupon asset could diminish, making yields on other assets more attractive in comparison. It remains to be seen whether and how much a rate cut will be in 2024. The likelihood that U.S. interest rates will remain higher for longer will keep gold prices in check.
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 first-line resistance of 1939, and on the bottom, focus on the first-line support of 1910.
Analysis of crude oil news: On Tuesday (September 5), due to positive economic data from China and the United States and expectations that major oil-producing countries will continue to reduce crude oil supply, market sentiment was boosted and oil prices rose slightly. The continued price gains came after both contracts ended last week at their highest levels in more than half a year, breaking a two-week losing streak. On the demand side, China’s Caixin Manufacturing Purchasing Managers Index (PMI) survey data showed that China’s manufacturing activity unexpectedly expanded in August, making people feel optimistic about the economic health of the world’s largest oil importer again. Analysts say Russia has agreed with its OPEC partners on parameters for continuing to cut exports. The remarks heightened expectations of tighter oil supplies. Details on the program cuts are expected to be released this week. Saudi Arabia is leading the effort to prop up oil prices, having voluntarily slashed output under a production pact between OPEC and the OPEC producer bloc, which includes allies including Russia. Market analysts said there is still room for oil prices to rise due to China’s booming tourism industry and OPEC’s supply restrictions.
Today’s crude oil strategy: It is recommended to focus on rebounding from high altitudes, supplemented by callbacks from lows and multiples. Focus on the first-line resistance at 87.8 at the top and first-line support at 85.0 at the bottom.
The execution of gold and crude oil trading must be done carefully, the above strategies are only recommended as reference.
