Spot gold experienced a sharp intraday plunge during Wednesday's midday session on September 2, with prices briefly hitting a two-week low of $4,282 per ounce before stabilizing around $4,297, down 0.7% on the day.
The precious metal's decline was driven by a triple whammy of bearish factors: hawkish signals from the Federal Reserve, US Treasury yields breaking above 4.75%, and a wave of profit-taking that triggered a selling cascade. This combination weighed heavily on the entire precious metals complex. On the technical front, the daily chart printed a robust bearish candlestick on Tuesday, forming a bearish engulfing pattern that decisively breached the key support level of $4,320. That former support zone has now transformed into significant resistance.
Meanwhile, the short-term moving averages (MA5 and MA10) have formed a bearish crossover and are pointing lower, keeping prices pinned below these key levels with strong downside pressure. The daily candle closed as a large bearish bar with a slightly longer upper shadow, and following such a close, we anticipate the gold market may see a technical rebound during the day before any further downside. The strategy remains to sell on rallies after any bounce. Key levels to watch include resistance at $4,335 and $4,360, with support at $4,280 and $4,260. A suggested trading plan involves buying on dips toward $4,280-$4,265 and selling on rallies toward $4,360-$4,370, targeting 30-80 points of movement. The key pivot for gold sits at $4,335 per ounce. Please note these are purely personal views and do not constitute investment advice.
In the oil market, WTI crude continued its upward momentum during Wednesday's Asian trading session, marking its third consecutive day of gains and its fifth positive close in the past six sessions. Prices climbed to their highest levels since July 24, currently trading near $90.80 per barrel, up approximately 1.2% on the day.
This week's price action suggests that oil bulls are regaining control of the market, gradually lifting prices out of the previous consolidation range. The primary catalyst for this rally remains geopolitical risks surrounding Middle East energy supply. Overnight, WTI maintained a constructive bullish tone above both its 100-day moving average ($85.12) and the 50% Fibonacci retracement level ($87.20), indicating that any pullback may attract buyers. On the daily chart, the bullish candlestick driven by geopolitical headlines has turned short-term moving averages higher, while the MACD histogram shows clear expansion, signaling increasing bullish momentum. However, this rally is event-driven, and with fundamentals not yet fully aligned, the sustainability of the uptrend remains questionable. The four-hour chart shows prices rapidly deviating from the moving averages, suggesting there is room for a technical pullback to restore equilibrium. For the session, immediate support stands at $89.60, with core support at $88.20, while immediate resistance is seen at $92.20, followed by medium-term resistance at $93.00. Key resistance levels are $92.2 and $93.0, with support at $89.6 and $88.2. A short-term trading plan involves buying on dips around $88.6 plus or minus $0.2 and selling on rallies around $92.2 plus or minus $0.2, targeting $2.0-$3.0 per barrel. This content is for reference only and does not constitute investment advice; investors act at their own risk.