The upcoming week promises a whirlwind of activity for oil and gold traders, with crucial US job reports that include non-farm payrolls and unemployment data, as well as lingering geopolitical tensions set to shape market sentiment.
Oil Markets: OPEC+ Hesitation Amid Rising Demand Concerns
OPEC+ has announced a gradual increase in oil production starting in October, but market jitters persist due to ongoing demand concerns and robust supply from non-OPEC+ sources.
While Saudi Arabia’s pledge to maintain production cuts in the third quarter offers some support, the delayed decision on production baselines until 2026 underscores the cautious approach of the cartel.
On the charts, oil prices show support, with potential chart formation hinting at a possible upward reversal. However, there is potential resistance, which presents a formidable challenge for bulls.
Gold Markets: Safe-Haven Appeal Tested Amid Fed Uncertainty
Gold prices are under pressure as cooling US inflation data dampens expectations of a Federal Reserve rate cut. However, geopolitical tensions in the Middle East, particularly the ongoing conflict in Gaza, could bolster demand for gold as a safe-haven asset.
Technically, gold is potentially bullish, suggesting a possible corrective bounce. However, the charts show a tough barrier at $2,345, making it difficult for buyers to push past it.
US Jobs Report to Drive Volatility
Friday’s US jobs report will be closely watched for clues on the health of the US economy and the Fed’s policy trajectory. A strong jobs report could bolster the dollar and weigh on gold, while a weak report could have the opposite effect.
Navigating the Week Ahead
Traders should brace for heightened volatility in the coming days as market participants digest a barrage of economic data and geopolitical developments. Risk management will be paramount as investors attempt to navigate the complex interplay of economic data and geopolitical risks.
This article was submitted by Antreas Themistokleous, an analyst at Exness
Disclaimer: the opinions in this article are personal to the writer and do not reflect those of Exness.