After last week’s slowdown in non-farm job growth, the U.S. dollar and Treasury yields declined, leading to a rise in gold prices. This week, attention is focused on speeches by Federal Reserve officials about the economic outlook.  

Additionally, last week’s OPEC+ ministerial meeting, which didn’t result in production policy discussions, saw oil prices increase after Saudi Arabia and Russia extended production cuts, the spotlight is on the conclusions regarding production from the three major reports. 

Gold >>

Gold prices surged last Friday as the released U.S. employment report fell below expectations. This led to a decline in the U.S. dollar and Treasury yields, providing a breather for gold. However, despite this opportunity, gold marked its poorest weekly performance in six weeks.  

By the close of the U.S. market on Friday, spot gold was reported at $1,942.54 per ounce, a gain of $8.33 or 0.43%. It reached a daily high of $1,946.85 per ounce and a low of $1,925.15 per ounce. This week’s focus is on speeches by Federal Reserve officials about the economic outlook. 

On Friday, gold prices responded to the impact of non-farm employment data, showing a dip and rebound after reaching a low. During the Asian and European sessions, prices oscillated below $1,938, following which they slightly declined. 

After the release of the non-farm employment data in the evening, the prices rapidly dropped and pierced the $1,925 support level before stabilizing and rebounding.

After 21:00, prices surged continuously, breaking through the $1,940 level and reaching around $1,946 before experiencing some fluctuations. The session closed with a strong rebound, with prices settling near $1,937.

Technical Analysis: 

Today’s short-term gold trading strategy is suggesting a focus on buying the dips and selling the rallies.  

• Key resistance levels to watch on the upside are around 1955-1960.  
• Key support levels to watch on the downside are around 1932-1927. 

WTI Crude Oil >> 

Last Friday, oil prices rose by over $1 per barrel, marking the sixth consecutive week of weekly gains. During the U.S. session, WTI crude oil oscillated in a narrow range near $82.23 per barrel.  

The oil market is set to receive three major monthly reports this week, with a particular focus on production conclusions, especially concerning Saudi Arabia and Russia’s production reduction plans. 

Earlier, the largest oil-producing country, Saudi Arabia, extended its voluntary oil production cut plan of 1 million barrels per day until the end of September.  

Russia is also set to reduce its daily oil exports by 300,000 barrels next month. These plans undoubtedly intensify concerns about supply and demand.  

On the demand side, Russian Deputy Prime Minister Novak indicated after an OPEC+ ministerial meeting on Friday that global oil consumption could increase by 2.4 million barrels per day this year. The meeting didn’t bring about any changes in production policy. 

Data released last Friday showed that the U.S. economy maintained moderate job growth in July. However, robust wage growth and a declining unemployment rate indicate ongoing tightness in the labor market, putting pressure on oil prices. 

Crude oil continued its bullish momentum last Friday, closing higher after fluctuating upwards. During the Asian and European sessions, prices exhibited a consolidating rhythm above the $81.2 level.  

In the late U.S. session, there was a minor lift above the previous day’s opening dip of $82.4, extending the strength to close around $83.2, showcasing a bullish sentiment. 

Technical Analysis: 

Today’s short-term trading strategy suggests focusing on buying on dips, with selling on rebounds being a secondary approach.  

• Key resistance levels to watch in the short term are around 83.5-84.0. 
• Key support levels to monitor in the short term are around 81.0-80.5. 

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