Article by: ETO Markets
Due to predictions that the Federal Reserve may be done raising interest rates, the yields on US Treasury bonds and the US dollar are both continuing to decline. The non-yielding price of gold is therefore thought to be receiving some support from this. Aside from this, any significant decline in the safe-haven XAU/USD pair should be constrained by the possibility of an intensification of the Israel-Hamas conflict and the deteriorating economic situation in China.
October saw a decline in the Chinese manufacturing PMI below 50 as a result of decreased demand and slower production. Nevertheless, the negative data from China casts doubt on the recent optimism regarding a rebound in the second-largest economy in the world. Notably, China is the world's largest consumer of oil, thus pressure on oil prices could come from a poor economic forecast.
Oil traders will be watching the US weekly Initial Jobless Claims report. The US Nonfarm Payrolls, which are predicted to increase by 180K jobs in October from 336K in September, will be the focus of attention on Friday. These developments could have a big effect on the WTI price denominated in USD. The data will be used as a guide by oil traders to identify trading opportunities around WTI prices.
We see a rise in the price of gold due to declining US bond yields and a weaker US dollar today. The intraday bullish move is also attributed to China's economic troubles and geopolitical tensions. Any further increase in the safe-haven precious metal's price is limited by a further rise in equity markets.
Traders are still promoting long positions as long as the crucial static support level at $… is maintained. Relative Strength Index is still in a good position to experience another upswing while staying above the midline. Furthermore, supporting the bullish potential are the 20- and 50-DMAs. Golden cross that are still in effect in addition to the 20- and 100-DMAs golden crosses.
At the high of the previous day, $…, there is immediate resistance; above this, the $… barrier will be retested. Reviving the uptrend toward the multi-month high of $…requires acceptance above it.
Oil traders will be watching the US weekly Initial Jobless Claims report. The US Nonfarm Payrolls, which are predicted to increase by 180K jobs in October from 336K in September, will be the focus of attention on Friday. These developments could have a big effect on the WTI price denominated in USD. The data will be used as a guide by oil traders to identify trading opportunities around WTI prices.
Bidders will be trying to stop a decline below the 200-DMA around $… as WTI begins to move back toward $... The previous swing high, which ended just short of the $…handle, caps off the top side, and a lower high pattern is developing on the daily candlesticks. However, the immediate resistance awaits around $...
