Gold Rises with Support from a Weakening Dollar

market news summary

European markets closed higher on Friday after U.S. stocks posted temporary gains amid uncertainty about inflation expectations. The basic resources sector fell by 0.4%, while media stocks rose by 1.1%. The European Stoxx 600 index closed up 0.22%, breaking a seven-session losing streak, the longest since February 2018.

European gas prices sharply increased on Friday as workers at Chevron’s Australian natural gas facilities went on strike, raising concerns that a prolonged production halt could put pressure on global supplies.

Dollar Index (USDX)

The dollar has enjoyed a noticeable turnaround over the past two months, erasing all its early losses in 2023 following a series of strong economic data indicating that the United States is unlikely to experience a long-anticipated recession.

The markets are eagerly awaiting important economic data this week that will confirm the Federal Reserve’s future moves, with the most significant being the Consumer Price Index to be released next Wednesday. The dollar is currently trading below its key pivot point, with a downward bias since the start of today’s session at $104.50.

Pivot point: 104.85

Resistance level	Support level
105.15	104.70
105.35	104.45
105.60	104.00

Spot Gold (XAUUSD)

Gold prices rose on Monday, September 11, supported by a decline in the US dollar and bond yields, amid anticipation of important economic data this week.

Gold in spot trading rose to $1,926 per ounce, up $10 from the start of today’s session.

Pivot point: 1921

Resistance level	Support level
1926	1914
1934	1909
1939	1901

Dow Jones Index (DJ30ft – US30)

The Standard & Poor’s 500 index closed with a slight increase on Friday, with trading volatility near the end of the session, while the three major indices on Wall Street recorded weekly losses as investors worried about interest rates and awaited US inflation readings.

Investors are concerned about rising oil prices and are awaiting the release of the Consumer Price Index for August, scheduled for Wednesday, in search of signals regarding the Federal Reserve’s decisions on interest rates.

The Dow Jones Industrial Average index rose by 72 points or 0.21% to 34,651 points from the start of today’s session.

Pivot point: 34565

Resistance level	Support level
34695	34475
34785	34350
34900	34260

US Crude (USOUSD)

Oil prices rose by around 1% to reach their highest levels in nine months on Friday, supported by the rise in US diesel futures and concerns about oil supply shortages after Saudi Arabia and Russia extended production cuts last week.

Brent crude futures rose by 73 cents or 0.8% to settle at $90.65 per barrel, while US West Texas Intermediate crude increased by 64 cents or 0.7% to settle at $87.51 per barrel.

Pivot point: 87.10

Resistance level	Support level
88.05	86.25
88.85	85.30
89.80	84.45

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