Spot gold showed modest weakness during Monday's Asian session on September 7, with prices hovering near $4,400 per ounce, extending the recent pullback from earlier highs. The immediate catalyst for this decline came from the latest US employment data, which delivered a significantly bearish surprise on Friday, interrupting the prior two-day rally and triggering a corrective move lower.
However, gold recovered a substantial portion of its losses during late Friday trading, and Monday's open has not seen a breakdown below last week's low. This suggests the market has entered a phase of range-bound consolidation and repair. On the 1-hour chart, gold has rebounded from its recent bottom and is now exhibiting short-term sideways movement, with the $4,360 support zone acting as a critical floor.
If this support level holds, further consolidation is likely, though upside appears limited with resistance positioned around the $4,420 zone. Overall, Monday is expected to bring a rangebound session, with the downside potentially constrained. Key levels to monitor include resistance at $4,420 and $4,440, with support at $4,380 and $4,360.
The recommended approach involves buying on dips near $4,372 ± $2 and selling on rallies near $4,413 ± $2, with a stop loss of $10 and targets of $15 to $50. The pivotal level for gold today stands at $4,408 per ounce. Traders should also note that the People's Bank of China is set to release its foreign exchange reserve data this afternoon; any continued gold purchases could provide renewed confidence to the bull camp.
Turning to WTI crude oil, prices firmed during Monday's Asian session as geopolitical tensions in the Middle East escalated. Over the weekend, the US conducted military strikes against oil tankers linked to Iran, prompting Tehran to expand restricted zones around the Strait of Hormuz. This has intensified concerns over the reliability of this critical global energy chokepoint, shifting market focus away from traditional inventory and demand metrics toward navigation stability and regional supply security.
The short-term technical outlook for WTI remains bullish-biased, with prices trading in an upward consolidation pattern. On the daily chart, the medium-term uptrend remains intact, with prices holding above the ascending trendline and short-term moving averages maintaining a bullish alignment. The recent pullback has not compromised the overall bullish structure, and the current advance represents a secondary upward move within a strong trend.
On the 4-hour timeframe, some profit-taking followed the sharp rally, but prices quickly re-established near the $92 level, indicating active buying interest on dips rather than a trend reversal signal. Key levels to watch include resistance at $93.5 and $94.2, with support at $91.5 and $90.5. The suggested strategy involves buying on pullbacks to $91.8 ± $0.2 and selling on rallies to $94.2 ± $0.2, with a stop loss of $1.0 and targets of $2.0 to $3.0 per barrel. The pivotal level for WTI stands at $92.0 per barrel.
Please note that all analysis and suggestions provided are for market reference only and do not constitute investment advice. Investors should exercise caution and assume full responsibility for their trading decisions.
Comments