Risk sentiment eased, leading to a slight gold price correction, while the market remains focused on upcoming ‘dismal data.’  

Global oil supply conditions improved, prompting a reversal in crude oil prices after a significant rise the previous week, with prices closing below $90 per barrel.  

European Central Bank President Lagarde stated that they are monitoring the impact of oil prices on inflation. 

Gold >> 

Increased safe-haven demand stimulated a strong rise in precious metal prices. However, gold prices saw a high-level pullback yesterday, with spot gold closing down by 0.65% or $12.57 per ounce on Monday, at $1,920.14 per ounce. December gold futures also decreased by 0.37%, closing at $1,934.30 per ounce. 

The Middle East conflict has boosted demand for traditional safe-haven assets like gold. Analysts suggest that given the extremely tense geopolitical situation in the Middle East, gold prices are likely to remain steady and could even reach $2,000 in the coming weeks.  

Since falling to a seven-month low on October 6, tensions between Israel and Hamas have continued for ten days, leading to an inflow of safe-haven funds and a gold price increase of over $100. Investors are focused this week on the U.S. retail sales data, often referred to as “dismal data.” 

On the technical side, gold prices experienced a high-level pullback in a volatile session. During the Asian session, they opened slightly lower below the $1,928 mark and entered into a range-bound pattern. By midday, they further dropped below the $1,920 level and continued to weaken.  

In the European session, gold prices swiftly dipped below the $1,908 level before stabilizing and rebounding to hover around the $1,924 mark at the close of the U.S. session. 

Technical Analysis: 

Today’s short-term strategy for gold suggests focusing on long positions during pullbacks, with short positions taken on rebounds as a secondary approach. 

• Key resistance levels to watch in the short term are around 1930-1935. 
• Key support levels to watch in the short term are around 1905-1900. 

WTI Crude Oil >> 

Global oil supply conditions have improved, leading to a reversal in crude oil prices, with Monday’s close below $90 per barrel. Additionally, U.S. crude oil saw some profit-taking after facing resistance at the 21-day moving average. U.S. crude oil fell by $1.03 per barrel, a 1.17% drop, closing at $86.66 per barrel. Brent crude is currently at $89.64 per barrel, down 1.38% or $1.25 per barrel. 

Last week, crude oil prices experienced significant volatility and surged due to concerns about disruptions in the world’s largest oil-producing region.  

Analysts suggest that both major contracts rose by 6% to 8% last week due to market concerns about any signs of the Israeli-Palestinian conflict escalating into a broader conflict.  

The uncertainty and concerns regarding the escalation of the Israeli-Palestinian conflict continue to support the oil market. Additionally, Christine Lagarde, the President of the European Central Bank, informed Eurozone finance ministers that the European Central Bank is monitoring any inflation risks posed by oil price fluctuations resulting from the conflict. 

Oil prices maintained a narrow consolidation pattern in technical trading amid volatility. During the Asian and European sessions, they held above the $87 mark, consolidating with slight fluctuations.  

However, they picked up pace during the U.S. session, breaking above the $88.3 mark but faced resistance and retreated. They continued to oscillate below the $87.5 mark, ending the session with a bearish tone. 

Technical Analysis: 

Today’s crude oil trading strategy suggests focusing on short positions during rebounds, with long positions considered as secondary during price pullbacks. 

• Key resistance levels to monitor in the short term are around 88.5-89.0. 
• Key support levels to monitor in the short term are around 86.0-86.5. 

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