Market Update
Gold traded around 4,090 dollars per ounce on Wednesday after pulling back from a three-week high of 4,244.96 dollars. Early gains driven by expectations that fresh economic data might support a December Fed rate cut faded quickly as Fed officials continued signaling caution over further easing.
Oil held near 58.89 dollars per barrel as traders weighed worries about global oversupply against the risk of disruptions tied to sanctions on Russia’s Lukoil.
Gold
Gold pared early gains after the release of the Fed’s October meeting minutes. Spot gold rose 0.2 percent to 4,073.79 dollars after climbing more than 1 percent intraday. Investors now await delayed economic data to gauge the Fed’s next move.
The minutes showed policymakers were divided over last month’s rate cut and warned further easing could complicate the fight against inflation, which has stayed above the 2 percent target for more than four years. Markets now assign just a 30 percent chance of a December cut.
Meanwhile, President Trump criticized Chair Powell again, saying he should have cut rates faster.
Attention now turns to Thursday’s delayed nonfarm payrolls report, while the Labor Department confirmed that the October employment report will not be released due to the government shutdown.
Gold Technical outlook:
Gold hit resistance near 4,140 before reversing, but the broader bullish structure remains intact. Analysts note strong long-side momentum despite intraday volatility. Support sits between 4,065 and 4,035.
Gold Levels to Watch
• Resistance: 4,080 – 4,110
• Support: 4,065 – 4,035
Crude Oil
Oil prices fell sharply on Wednesday. Brent crude dropped 2.1 percent to 63.51 dollars, while WTI slid 2.1 percent to 59.44 dollars. Prices retreated as the United States pushed Ukraine to consider a ceasefire framework drafted by Washington, potentially paving the way for increased Russian oil supplies.
Analysts said that reduced geopolitical risk premiums refocused attention on weak market fundamentals, despite ongoing sanctions on Russian producers.
Technical outlook:
WTI remained weak throughout the session, extending its downward trend with little sign of rebound. Resistance is expected near 60.0 to 61.0, with support at 59.0 to 58.0.
Levels to Watch
• Resistance: 60.0 – 61.0
• Support: 59.0 – 58.0
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