How to trade oil and gold under Israel conflict?

Under the impact of the Israeli-Hamas conflict, market risk aversion sentiment is relatively evident.

In addition to the sharp rise in oil prices $Gold - main 2312(GCmain)$ , the prices of gold $Gold - main 2312(GCmain)$ and silver $Silver - main 2312(SImain)$ have also gapped up, while the US stock indices $NASDAQ(.IXIC)$ are trending downwards, and US bond prices $10-YR T-NOTE - main 2312(ZNmain)$ rebound.

Still recommend to take profits of oil at $94?

United States is likely to take significant actions on the supply side to suppress oil prices. However, the inability of oil prices to rise significantly does not necessarily mean a sharp decline; it is likely to remain within a range.

Under the influence of the conflict, if there are no existing crude oil positions, it is advisable to patiently wait for the situation to develop before making short-term decisions.

If crude oil once again tests the pressure level of $94, investors can consider selling at high point. The support at the lower levels was around $77 previously.

If there are no significant changes in the news, it is expected to fluctuate around the previous high levels of $83/84.

Gold rebounds above $1860, but its direction is not clear.

Last week, gold rebounded after touching bottom and has now returned above the gap at $1860. There might be a second buying opportunity in the future.

If you haven't taken long positions at lower levels, you can consider building medium to long-term positions at suitable prices. Gold is likely to rebound in the current market environment.

If you find gold futures too expensive or risky, you can consider $SPDR Gold Shares(GLD)$.

The 20-day moving average of $Gold - main 2312(GCmain)$ is still significantly away from the current price. It is uncertain whether gold has bottomed out until it rises above the 20-day moving average.

Therefore, it is possible that gold prices may experience slight rebounds next week and continue to fluctuate at low points, waiting for the direction to be determined after crossing the 20-day moving average, which would be the opportunity to bottom fish.