Gold
Reports of Ukraine using US-provided long-range missiles to strike deep into Russian territory triggered a surge in safe-haven demand, pushing gold prices higher on Tuesday. The yellow metal extended its gains for a second consecutive session, climbing to a one-week high.
By the close, gold rose 0.79%, settling at $2,632.08/oz, with intraday highs reaching $2,639.35/oz.
According to media reports, Ukraine employed US-supplied Army Tactical Missile Systems (ATACMS) in its attacks on Russia’s Bryansk region. This marked a significant escalation in the ongoing conflict, coinciding with the 1,000th day of the war.
In response, Russian President Vladimir Putin signed an updated nuclear deterrence policy, which analysts view as a stark warning to Washington.
The retreat of both the US dollar and Treasury yields further supported gold prices, enhancing its appeal to buyers using other currencies. After climbing to a one-year high last week, the dollar index slipped 0.03% to 106.16 on Tuesday. Meanwhile, US Treasury yields fell to a one-week low, further bolstering gold’s allure.
This session, investors will focus on updates regarding the Russia-Ukraine situation and remarks from Federal Reserve officials Lisa Cook and Michelle Bowman.
Gold Technical Analysis:
Gold showed strong momentum on Tuesday, opening near $2,611 and climbing steadily to $2,640 before consolidating. The daily chart signals a robust recovery, with key resistance levels at $2,642 and $2,690.
On the 4-hour chart, a steady climb above $2,578 suggests bullish continuation, though a break below $2,620 could test earlier support levels.
Today’s Focus:
- Primary Strategy: Focus on buying dips.
- Secondary Strategy: Consider selling at resistance if a reversal occurs.
- Key Resistance Levels: $2,645–$2,650.
- Key Support Levels: $2,620–$2,615.
Oil
Crude oil prices saw modest gains on Tuesday amid continued concerns about supply disruptions due to the Russia-Ukraine conflict. However, factors such as partial resumption of Norway’s Johan Sverdrup oil field and Iran agreeing to halt enrichment of weapons-grade uranium capped the upside.
WTI crude rose 0.33% to settle at $69.39/bbl, while Brent crude added 0.01%, closing at $73.31/bbl.
The partial resumption of Norway’s Johan Sverdrup oil field reduced pressure on supply fears. Production has returned to two-thirds of capacity following an earlier outage caused by a power failure.
Meanwhile, the International Atomic Energy Agency (IAEA) announced that Iran agreed to halt the enrichment of near-weapons-grade uranium, signaling potential easing in its standoff with Western nations.
Adding to bearish factors, the American Petroleum Institute (API) reported a substantial increase in US crude inventories for the week ending November 15. Stockpiles rose by 4.75 million barrels, significantly exceeding expectations of an 800,000-barrel rise.
For the day ahead, investors will closely monitor the US Energy Information Administration’s (EIA) weekly crude inventory report and any developments related to the Russia-Ukraine conflict.
Oil Technical Analysis:
WTI crude opened at $66.90/bbl, retraced to $66.68/bbl before climbing to an intraday high of $69.55/bbl. The session ended with a balanced bullish candle, suggesting potential consolidation.
Key resistance lies at $70.50–$71.00, while support levels at $68.00–$67.50 are crucial for maintaining current momentum.
Today’s Focus:
- Primary Strategy: Look to buy on pullbacks.
- Secondary Strategy: Consider shorting at resistance levels.
- Key Resistance Levels: $70.50–$71.00.
- Key Support Levels: $68.00–$67.50.
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
