Market Recap
On Wednesday, gold briefly hit a record high of $3,674.36 per ounce on Tuesday before retreating below $3,630, closing at $3,626.13. International oil prices rose modestly, with Brent crude futures up 0.53% to $66.74 per barrel and WTI crude futures up 0.57% to $62.99 per barrel.
Gold
Gold reached an intraday record of $3,674.36 per ounce on Tuesday but pulled back below $3,630, settling at $3,626.13.
According to the CME FedWatch Tool, traders now fully price in a 25-basis-point Fed rate cut at next week’s meeting, with some aggressive investors even betting on a 50-basis-point cut.
Bart Melek, TD Securities’ Head of Commodity Strategy, noted that this rally is largely driven by expectations that the Fed may begin easing in September.
Gold – Technical Outlook
Gold initially advanced before facing resistance, with bullish momentum continuing through the Asian and European sessions. During US trading, prices briefly surpassed $3,673 before pulling back into a consolidating range. The daily candlestick printed a mixed bearish bar, indicating short-term consolidation.
Gold – Key Levels to Watch
- Upside Resistance: $3,700
- Downside Support: $3,660–$3,654
- Maintain a “buy-on-dips” approach.
Crude Oil
Oil prices rose modestly due to escalating Middle East tensions and US pressure on Europe for additional tariffs. However, OPEC+ production increases and rising inventories kept fundamentals weak, limiting gains.
Brent crude futures climbed 0.53% to $66.74 per barrel, while WTI rose 0.57% to $62.99 per barrel.
IG analyst Tony Sycamore noted: “Oil has been relatively muted in reaction to news, and doubts over expanded sanctions keep prices fragile, leaving room for further pullbacks.”
Crude Oil – Technical Outlook
Oil saw a modest rebound during range-bound trading, with prices briefly stabilizing around $61 and forming a short-term bullish corrective pattern.
Crude Oil – Key Levels to Watch
- Upside Resistance: $63.2–$63.6
- Downside Support: $62.3–$62.5
- Continue following the prevailing trend with a cautious approach.
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