Before the release of the U.S. non-farm payroll data, the market anticipated a weakening job market, boosting gold prices as the U.S. dollar softened.

The imbalance in the supply and demand of the oil market intensified, leading to a continuous decline in oil prices, with the U.S. crude oil price falling below the USD 70 integer mark.

Gold >> 

Last Friday, the release of non-farm payroll data caused a significant fluctuation in the spot gold price, reaching a low of USD 1994.56 per ounce and closing at USD 2004.41 per ounce. Gold prices declined last week, with spot gold falling by approximately 3.30%.

Gold futures dropped by 1.56%, closing at USD 2014.50 per ounce. The unexpectedly strong U.S. November non-farm employment report showed a decrease in the unemployment rate to 3.7%, an increase in employment by 199,000 people, and a monthly wage growth exceeding expectations.

This fueled market expectations of the Federal Reserve accelerating interest rate hikes, putting pressure on spot gold prices and causing a rapid decline. This week, the market is focusing on central bank interest rate decisions and the U.S. Consumer Price Index (CPI).

On the technical side, gold exhibited an overall pattern of rising to a peak and then falling last week, with a bearish weekly candle.

Last Friday, during the day, gold fluctuated around 2030, but in the evening session, it was impacted by the significant non-farm data and selling pressure, breaking below 2010 and falling again to 1994.5. The daily candle closed as a bearish candle.

Technical Analysis:

Today’s short-term strategy for gold suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks.

• Key resistance levels to watch in the short term are around 2020-2026. 
• Key support levels to watch in the short term are around 1990-1985. 

WTI Crude Oil >> 

The crude oil market suffered a heavy setback last week. Both U.S. West Texas Intermediate (WTI) crude and Brent crude experienced their seventh consecutive week of decline, marking the longest losing streak in five years.  

WTI crude ultimately closed up 2.1% at USD 71.36 per barrel, while Brent crude closed up 1.77% at USD 76.1 per barrel.  

On Thursday, the two largest oil-exporting nations, Saudi Arabia and Russia, called on all OPEC+ member countries to join production cuts in order to safeguard the interests of the global economy, citing the move as necessary for the benefit of producers and the broader global economy.  

Concerns about crude oil demand in major Asian countries also restrained oil price increases. Chinese customs data revealed a 9% year-on-year decrease in crude oil imports in November, attributed to high inventory levels, weak economic indicators, and a slowdown in orders from independent refineries, weakening demand. 

On the technical side, last Friday, crude oil exhibited a substantial volume-driven decline at a low level. The daily chart showed a weak one-way decline with five consecutive bearish candles, and the daily chart continued to close at a low level. Short-term dynamics remain weak. 

Technical Analysis: 

Today’s crude oil trading strategy suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks. 

• Key resistance levels to monitor in the short term are around 72.4-73.0. 
• Key support levels to monitor in the short term are around 69.4-70.0. 

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