- Crude Oil
Oil fell 1.2% on Monday and steadied after an early drop on Tuesday, as investors await Friday’s meeting between US and Russian leaders for fresh direction. Traders are closely watching the lead-up to the talks, which could result in eased US sanctions on OPEC+ member Russia and potentially bring more supply to the market.
Prices have declined this year as the producer group accelerated output increases despite the risk of oversupply, with US tariff actions adding pressure to global demand. On Tuesday, the US Department of Energy raised its forecast for this year’s global surplus to 1.7 million barrels per day. The International Energy Agency will release its estimates on Wednesday, while OPEC maintained a more optimistic view, projecting a tighter global oil market than previously expected.
A US industry report indicated a slight increase in nationwide stockpiles last week, with official data due Wednesday.
In Asian trading hours, Brent futures volumes remained below the daily average following muted sessions on Monday and Tuesday. The benchmark’s second-month implied volatility hovered near a two-week low.
WTI is trading below the 9 SMA on the daily chart, maintaining its bearish bias. On the 4-hour chart, prices have bounced off the key support level of $62.1, the 8th August session low. A breakdown from this level can send prices to the $60-$59 support levels. Strong resistance is seen at $63.6 level, which was tested multiple times in the previous session. A break above this level can push prices to $64.3, which coincides with the 50 SMA, followed by $65.1, which is the previous breakout support.
Brent is trading at $65.7. Resistance is seen at the 50 SMA level of $67.3, and support is at $63.7 on the daily chart.
- Gold
Gold is trading at $3,350, extending its bullish tone after July CPI came in at 2.7%, below the 2.8% forecast. The softer inflation reading has strengthened expectations of a September Fed rate cut, with the CME FedWatch tool now indicating a 94.4% probability of a 25-basis-point rate cut. Shorter-duration U.S. Treasury yields also fell following the US inflation data, making non-yielding gold more attractive at the expense of the U.S. dollar. This dovish shift is boosting the appeal of non-yielding bullion, attracting renewed buying interest and sustaining upward momentum. Signs of a slowing labor market, with weaker job growth raising concerns over economic momentum, along with ongoing macroeconomic uncertainties and their potential impact on global trade, are further enhancing gold’s safe-haven demand. Additionally, hopes of a rebound in Indian jewellery demand in the second half of the year, coupled with sustained gold purchases by China’s central bank, are expected to provide additional support for the metal, with both nations being the world’s largest gold consumers.
On the 1-hour chart, gold recently broke down from an ascending channel pattern, but price action has found stability above a key support zone near $3,334, a level that has acted as a strong pivot in previous sessions. Holding above this area keeps bullish prospects intact. Immediate resistance lies around $3,360–$3,365. Sustained support at $3,334 will be crucial for maintaining upward momentum.
Gold prices in the UAE are as follows:
24 Carat – AED 404.00
22 Carat – AED 374.00
21 Carat – AED 358.75
18 Carat – AED 307.50
