Analysis of gold news: On Wednesday (January 3), the price of gold was trading around US$2,059 per ounce in the Asian market. On the first trading day of 2024, spot gold continued to maintain an upward trend. The market is paying close attention to this week’s Federal Reserve meeting. Prior to the release of the minutes and non-farm payrolls report, gold prices are expected to remain volatile. Gold prices rose on Tuesday, supported by the prospect of an interest rate cut by the Federal Reserve in 2024, ahead of a slew of important economic data due this week, including European inflation data, U.S. job vacancies and non-farm payrolls data. The data will help shape market expectations for future monetary policy moves by the Federal Reserve and the European Central Bank. Looking ahead to 2024, gold appears poised to have another strong January as the market develops. First, the Federal Reserve paused raising interest rates, and the market generally expects the central bank to start cutting interest rates next year. This will effectively curb the appreciation pressure on the U.S. dollar. In fact, as the New Year approaches, the U.S. dollar may depreciate significantly, thereby eliminating the main headwind for gold. In addition, the strong performance of China’s gold market is also worthy of attention. This may mean that gold demand in the Chinese market will increase further during the New Year period. Gold prices have shown a steady upward trend since the central bank effectively gave in to inflationary pressures, despite attempts by Fed officials to calm market expectations of rate cuts. To sum up, if historical trends continue, gold is expected to continue rising in the first month of 2024. For investors, this is undoubtedly a gold buying opportunity worth seizing.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the 2075 first-line resistance at the top and the 2050 first-line support at the bottom.
Analysis of crude oil news: Crude oil prices were trading around US$70.48 per barrel in the Asian market on Wednesday (January 3). As investors lowered their expectations for interest rate cuts, the US dollar strengthened, putting pressure on oil. At the same time, oil prices fell on the first trading day of 2024, with international crude oil futures settlement prices falling by more than 1% as concerns that tensions in the Red Sea could disrupt supply eased. OPEC will hold an online meeting early next month to resume routine oil market monitoring. A person familiar with the matter said the meeting is planned for February 1. The Organization of the Petroleum Exporting Countries (OPEC) and its allies began a new round of production cuts this month in an attempt to avoid a global supply glut in the first quarter and defend crude prices. Oil prices fell nearly 20% in the fourth quarter as record supplies from the United States and other countries offset OPEC production cuts and strong fuel demand. Oil consumption growth is expected to slow sharply this year, prompting forecasts of a supply glut. U.S. economic data once again missed expectations, with the S&P Global Manufacturing Purchasing Managers’ Index (PMI) falling to a four-month low of 47.9 in December, adding to downward pressure, the latest data showed on Tuesday. The number is widely expected to hold steady at 48.2 in November, with crude prices falling further as investors returned to the safe-haven dollar and sold off stocks and shares as a weaker U.S. economic outlook is weighing on risk appetite.
Today’s crude oil strategy: It is recommended to focus on rebounding from high altitudes, supplemented by callbacks to lows. Focus on the first-line resistance of 72.0 at the top and the first-line support of 69.0 at the bottom.
The operation of gold and crude oil trading must be done carefully, the above strategies are recommended only for reference.
