Gold
Gold prices rose for a fourth consecutive session on Thursday as geopolitical tensions escalated after Russia launched hypersonic intermediate-range ballistic missile strikes on a Ukrainian military facility.
Safe-haven demand surged, pushing gold to a near two-week high of $2,673.38/oz. By the close, gold was up 0.73%, settling at $2,669.37/oz.
Citing Russian President Vladimir Putin, reports confirmed that the strikes targeted Ukraine’s defense industry facilities and tested a new hypersonic missile dubbed “Hazelnut.” This missile, capable of striking targets at Mach 10, is said to be impervious to existing missile defense systems.
David Meger, Head of Metal Trading at High Ridge Futures, noted, “Heightened tensions between Ukraine and Russia remain a significant geopolitical driver for gold.” Spot gold has gained 4% this week, marking its best performance since April, partially recovering recent losses.
However, the release of US initial jobless claims data and Federal Reserve commentary tempered gold’s gains. Claims dropped to their lowest in seven months, signaling a potential rebound in November employment growth.
Meanwhile, Chicago Fed President Austan Goolsbee supported a slower pace of rate cuts, underscoring a dovish tilt in monetary policy debates.
Investors should monitor ongoing developments in the Russia-Ukraine conflict, US Michigan Consumer Sentiment Index final readings, and remarks from Fed Governor Michelle Bowman.
Gold Technical Analysis:
Gold’s daily chart reflects a bullish continuation with a series of higher closes. Short-term moving averages are trending upward, favoring the bulls. However, the broader Bollinger Band signals diminishing upward momentum, and MACD indicators maintain a bearish crossover. This suggests cautious optimism, with resistance at $2,680-$2,685 and support at $2,655-$2,650.
Today’s Focus:
- Strategy: Focus on buying dips and selling rebounds.
- Resistance: $2,680-$2,685.
- Support: $2,655-$2,650.
Oil
Oil prices rebounded on Thursday, climbing nearly 2%, as market fears over the Russia-Ukraine conflict overshadowed a larger-than-expected increase in US EIA crude oil inventories.
By the close, WTI January crude futures rose $1.35 (1.96%) to $70.10/bbl, while Brent January futures gained $1.41 (1.95%) to settle at $74.23/bbl.
Ole Hvalbye, a commodity analyst at SEB, highlighted that “concerns over an escalation in the Ukraine conflict are driving market sentiment.” Russia, the world’s second-largest crude exporter, presents significant risks to global oil supplies amid potential disruptions.
ING analysts emphasized the uncertainty around Ukraine potentially targeting Russian energy infrastructure and Moscow’s possible retaliatory measures. Meanwhile, oil traders are assessing the likelihood of supply chain vulnerabilities emerging.
On the supply side, OPEC+ appears poised to delay previously planned production hikes, with discussions set for their December 1 meeting. Additionally, Equinor’s Johan Sverdrup field in Norway, which temporarily halted operations, has resumed full production, stabilizing output in Europe.
Traders should watch the US oil rig count for the week ending November 22 and stay alert for any geopolitical updates from the Russia-Ukraine situation.
Oil Technical Analysis:
Crude oil’s daily chart shows a mixed session with a long-legged doji candle, reflecting indecision. The four-hour Bollinger Bands suggest a consolidation phase, with prices testing resistance near the midline. Watch for a breakout above $71.3-$71.8 or a pullback to support at $69.0-$68.5.
Today’s Focus:
- Strategy: Prioritize buying on pullbacks and selling into rallies.
- Resistance: $71.3-$71.8.
- Support: $69.0-$68.5.
Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
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.
