Gold and Crude Oil Stage a Bounce Off Support
Since the Israel-Hamas war erupted earlier in October, Gold and Oil have undoubtedly been the most impacted assets. They continued to increase but turned lower late last month as the conflict didn’t seem to be escalating. Gold retreated back down to $1,970 following the break above $2,000. It is presently trading at $1,985 after falling to $,980 where sellers met the 50 SMA (yellow) on the H4 chart.
The Israel-Hamas confrontation is mostly focused on Gaza, which is providing some comfort in larger markets. Today, equities are getting a buy, and this is transferring into price movement in the commodities area which are making some decent gains. Meanwhile, Oil slipped down more than 1% today, but has reversed above the support at $80.
The US factory orders beat expectations as well, which has contributed to the improved sentiment so commodities are getting a lift, with WTI Oil trading around $2,50 above the lows today after the bounce.
US Factory Orders for September
- Sept factory orders +2.8% vs +2.4% expected
- Prior was +1.2% (revised to +1.0%)
Details:
- Factory orders ex-transportation for Sept +0.8% versus +1.4% last month (revised to +1.5%)
- Durable goods order revised +4.6% versus +4.7% preliminary and -0.1% prior month
- Durable goods ex-defense +5.7% versus +5.8% preliminary. Last month -0.7%
- Nondefense capital ex-air +0.5% versus 0.6% preliminary. Last month +1.1%
- Durable goods ex transportation +0.4% vs 0.5% preliminary. Last +0.5%
The headline is a bit stronger but the revisions to core durable goods orders are a touch lower. There is some dollar buying on the data but it’s mild.
Gold XAU Live Chart
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