Market Recap
Gold fell sharply on Tuesday, dropping below the $3,900/oz mark to its lowest level in three weeks, as progress in US–China trade talks weakened the metal’s safe-haven appeal. Investors shifted focus toward the Federal Reserve’s interest-rate decision, while crude oil prices declined amid renewed supply concerns.
Spot gold traded around $3,950/oz, while US gold futures slipped nearly 0.9% to $3,983.10/oz. Analysts attributed the drop to easing trade tensions and profit-taking ahead of the Fed’s meeting.
Despite the pullback, gold remains up over 51% year-to-date, supported by geopolitical risks, trade disputes, and expectations of multiple US rate cuts.
Kitco Metals’ Jim Wyckoff noted that “the easing in trade tensions is bearish for safe-haven metals.” Meanwhile, Wall Street’s major indexes hit record highs on Tuesday, reflecting growing optimism in global markets.
Gold Technical Outlook
Gold continues to trade within a short-term downtrend channel, with the 5- and 10-day moving averages forming a bearish crossover. Prices have fallen below the 20-day moving average, while MACD momentum remains negative.
However, oversold signals are emerging: the KDJ indicator shows J values below 20, suggesting limited downside near the $3,880–3,885 support zone. Resistance lies around $3,970–4,004, a key congestion area from earlier sessions.
Today’s Gold Focus:
Trading strategy favors selling on rebounds and buying on dips.
- Resistance: $3,970–3,990
- Support: $3,920–$3,900
Oil
Oil prices extended their decline for a third consecutive session, with WTI falling over 2% to around $60.24/bbl, as traders assessed the impact of US sanctions on Russia’s top oil companies and potential OPEC+ output increases in December.
While sanctions initially boosted prices, analysts said exemptions for European operations and spare global capacity have tempered fears of immediate shortages.
IEA Chief Fatih Birol remarked that “the overall market still has sufficient spare capacity to offset the sanctions’ effects.”
Technically, oil remains in a transition phase, with MACD showing weakening bearish momentum. The short-term trend points to sideways consolidation, with possible intraday rebounds toward the $63 area.
Today’s Focus:
Trading strategy favors buying near dips and selling into rebounds.
- Resistance: $62.5–$63.5
- Support: $59.0–$58.0
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Disclaimer
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