Market Update
Spot gold recovered from a one-week low on Tuesday, supported by softer US labor data that strengthened expectations for a possible Federal Reserve rate cut in December.
Oil prices edged higher, with WTI climbing above 60 dollars per barrel as geopolitical tensions and renewed risk appetite helped offset lingering concerns over supply imbalances.
Gold
Spot gold rebounded to 4,072.37 dollars per ounce, lifted by weaker US employment data that increased the market’s confidence in a potential December rate cut.
Initial jobless claims rose to a two-month high, signalling cooling labor conditions and giving the Fed more room to ease.
FedWatch data now shows a nearly 50 percent probability of a December cut, up from earlier in the week. Markets are now focused on the upcoming Fed minutes and Thursday’s delayed September nonfarm payrolls, which may clarify the policy outlook.
Deutsche Bank maintained its constructive stance, projecting 4,000 dollars as next year’s average gold price driven by strong official-sector demand.
Gold Technical outlook:
Gold dropped during Asia trade, found strong support near 4,000, then rebounded to the 4,082 area.
The daily chart shows a mild bullish candle, though the broader trend remains bearish. Indicators point to short-term consolidation, with intraday resistance at 4,075 and oversold conditions driving Tuesday’s bounce.
Today’s Gold Levels:
Resistance: 4,110–4,130
Support: 4,030–4,000
Crude Oil
Oil prices closed higher on Tuesday, with Brent rising 1.07 percent to 64.89 dollars and WTI climbing 1.39 percent to 60.74 dollars.
US sanctions on Russian oil companies continued to tighten supply expectations, while President Trump’s announcement of beginning interviews for the next Fed Chair boosted market risk appetite.
Analysts noted that expectations of a potentially more dovish Fed leadership encouraged demand optimism, supporting crude prices.
Still, broader supply concerns remain. API data showed US crude inventories rising by 4.448 million barrels, while gasoline stocks also increased, adding pressure ahead of the EIA release.
Technical outlook:
WTI remains in a weak consolidation range around 60 dollars, with limited momentum to break higher.
A drop below 60 may trigger a move toward 58.50–59, while a break above 61.50 could open upside toward 63.
Today’s Levels:
Resistance: 60.5–61.5
Support: 59.0–58.5
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