Gold Weakness Confirmed as Oil Gaps Higher but Faces Resistance

Deep News
Sep 28

Spot gold is currently trading at 907.68 yuan per gram, equivalent to around US$4,215 per ounce internationally, down 1.89% on the day. An early-session cliff-drop broke straight through the prior low defense at 4,235, with the 4,200 integer mark now within close reach.

Driven by weekend hawkish Federal Reserve expectations and geopolitical tensions lifting oil prices, gold opened sharply lower in the morning, with the opening print marking the high of the day. The metal remained under sustained pressure, effectively breaking below the key US$4,250 support level during the session to hit a near three-week low.

On the daily chart, the KDJ indicator is spreading downward while MACD bearish momentum has expanded once again, confirming the near-term weak structure.

Key levels

Resistance: 4,235 and 4,255. Support: 4,185 and 4,145. Entry points and ranges: aggressive short at 4,218/28 with a stop at 38, conservative short at 4,245/55 targeting 4,185 and hold on a break. Aggressive long at 4,192/82 with a stop at 72, conservative long at 4,148/38 targeting 4,225 and hold on a break.

GOLD watershed: US$4,235 per ounce. Note: the above views are for reference only; in extreme market conditions, strict risk control is essential.

WTI crude oil is currently trading near US$93.6 per barrel, up about 1.25% on the day, while Brent crude is trading near US$98.8 per barrel, up about 1.41% on the day.

Stimulated by the deadlock in US-Iran talks, oil prices gapped up and rallied in the morning session, but overhead pressure is evident, with the short term overall maintaining a high-level range-bound, sell-the-bounce approach.

Following weekend news of a breakdown in US-Iran negotiations, WTI crude gapped higher at the open, touching a high near US$94.2, while Brent reached a high of US$98.84. Although the geopolitical risk premium supported the oil price rebound, the US$94-95 range above is densely packed with resistance, bullish momentum has weakened somewhat, and the short term shows a narrow range-bound pattern.

On the daily chart, the moving average system is in a bullish alignment and the medium-term trend points upward. The MACD fast and slow lines have opened upward above the zero axis, with ample bullish momentum.

On the 4-hour chart, oil prices pulled back after touching the dense resistance zone, and the short term has entered a consolidation rhythm.

Key levels

Resistance: 96.7 and 98.0. Support: 92.0 and 90.5. Entry points and ranges: aggressive short at 96.2/96.7 with a stop at 95.8; conservative short at 97.5/98.0 targeting 93.0 and hold on a break. Aggressive long at 92.2/91.7 with a stop at 91.0, conservative long at 90.8/90.3 targeting 95.0 and hold on a break.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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