Market Recap
On Thursday, gold extended its strong momentum, settling at $3,640.44/oz, up 0.4%. The rally was driven primarily by weaker-than-expected US PPI data, which reinforced market expectations for a Fed rate cut. Oil prices, after three consecutive days of gains, traded steady as markets digested President Trump’s latest comments on Russia and the potential for tougher EU sanctions.
Gold
Gold maintained its strength on Wednesday, closing at $3,640.44/oz, a 0.4% increase. The key driver was the unexpectedly soft US PPI data, which further solidified expectations of upcoming Fed rate cuts.
The August Producer Price Index (PPI) unexpectedly fell 0.1% MoM, well below economists’ forecasts of a 0.3% gain. July’s data was also revised lower to 0.7%. The weak reading eased market concerns about persistent inflation.
Analysts noted that the softer PPI print gives the Fed greater room to cut rates, echoing Powell’s earlier signal at Jackson Hole that policy easing is imminent. As a rate-sensitive asset, gold benefited—rate cuts typically weaken the dollar’s appeal and drive inflows into non-yielding assets such as gold, lifting prices further.
Gold – Technical Outlook
Gold continued to consolidate above the $3,620 support level, with repeated tests throughout the session before rebounding modestly higher. The daily candlestick closed in positive territory, with prices holding above the 5-day moving average, signaling the continuation of a bullish trend.
Gold – Key Levels to Watch
- Upside resistance: $3,680–3,682
- Downside support: $3,676–3,674
Crude Oil
After three straight sessions of gains, oil prices steadied as traders digested Trump’s latest remarks on Russia and the possibility of stronger EU sanctions.
According to the EIA, US crude inventories rose by 3.9 million barrels last week, far above market expectations of a 1.7 million barrel build. While overall stockpiles remain below the five-year seasonal average, the surprise jump highlighted weak demand and revived concerns of a potential supply glut later this year—putting short-term pressure on prices.
Crude Oil – Technical Outlook
Oil rebounded from the $62.9 support level, briefly breaking above $64 during US trading hours before retreating into consolidation. The daily candlestick closed higher, showing resilience despite overhead pressure.
Crude Oil – Key Levels to Watch
- Upside resistance: $64.0
- Downside support: $63.0–62.6
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. D 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 information should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. D 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.
