Gold
On Wednesday, escalating geopolitical tensions due to the Russia-Ukraine conflict intensified safe-haven demand, propelling gold for the third consecutive session. Prices reached a one-week high of $2655.27/oz before settling at $2650.15/oz, up 0.69%.
According to reports, Ukraine deployed British-provided Storm Shadow missiles to strike targets in Russia, marking a significant escalation in the conflict. Meanwhile, the US embassy in Kyiv issued a warning about potential major airstrikes, closing operations temporarily. Analysts see the geopolitical risks fueling safe-haven flows into gold.
However, gold’s upward momentum faced headwinds as the US dollar index rebounded from earlier losses. Federal Reserve Governor Michelle Bowman emphasized a cautious approach toward rate cuts, noting slowing progress in reducing inflation.
Gold Technical Analysis:
On the technical front, gold broke past a short-term downtrend line, signaling bullish strength. The next target lies near the middle Bollinger band around $2686.63, while support remains intact near $2630.
Today’s Focus:
- Strategy: Favor buying on dips with a secondary focus on selling near resistance.
- Resistance: $2665–$2670
- Support: $2635–$2630
Oil
On Wednesday, oil prices saw a sharp reversal despite initial gains driven by geopolitical risks. US Energy Information Administration (EIA) data revealed an unexpected inventory build, sending prices into a decline. WTI crude closed down 0.75% at $68.87/bbl, while Brent crude slipped 0.68% to $72.81/bbl.
EIA reported a surprising 5.45 million-barrel increase in commercial crude inventories, significantly above the forecasted 0.14 million-barrel build. Gasoline stocks also rose, adding to bearish sentiment.
Geopolitical risks provided some support for oil prices. Concerns about supply disruptions amid the Russia-Ukraine conflict and the ongoing Middle East tensions maintained a geopolitical risk premium. Reports suggest OPEC+ may postpone planned production hikes in December, adding to supply constraints.
Oil Technical Analysis:
From a technical perspective, oil prices remain under pressure near the $70 resistance level, with signs of consolidation around $69. A break below $68.5 could open further downside, while a push above $70 may signal a recovery.
Today’s Focus:
- Strategy: Sell on rebounds; consider buying near support.
- Resistance: $69.3–$70.3
- Support: $68.5–$67.0
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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.
