From a technical standpoint, the index recovered the previous low of $7,506 on the daily chart, supporting a bullish stance in the upcoming periods. Intraday, the index is trading in a rectangle pattern between $7,541 and $7,576. Any pullbacks to the lower end of the range could be an attractive add. A breakout and retest of the $ 7,576 level would also be an attractive entry. On the flip side, a breakdown retest of the $7,541 price level would serve as an attractive short entry targeting $7,506.
Gold and Silver
From a fundamental standpoint, gold’s rebound above $4,100 reinforces an asymmetric setup that signals further upside. The bullion has stabilised as a swoon in tech stocks and a sharp retreat in oil prices have cast doubt on how far the Federal Reserve’s tightening cycle can go, pressuring yields and the dollar as a result. A more restrained year-ahead Fed outlook gives gold room to rise even as the December FOMC continues to loom large. Key buyers are returning to the market. ETFs, which had started to capitulate to gold’s extended weakness in recent weeks, have been adding to holdings as the metal reclaimed $4,100. That follows updated data from the World Gold Council last week showing that central banks accelerated purchases yet again in September.
From a technical standpoint, gold has broken the trendline resistance that has been in place since August 2026. In fact, the commodity has bounced after retesting the breakout, supporting a bullish stance in the upcoming periods. From an intraday perspective, gold seems to be forming a price acceptance at the $4,150 price level. A breakout and retest of this level would provide attractive long opportunities targeting $4,215.
Gold prices in the UAE today are as follows:
24 Carat – AED 495.75
22 Carat – AED 459.00
21 Carat – AED 440.25
18 Carat – AED 377.25
Crude oil prices continued their downtrend yesterday, with WTI falling 4.58% and Brent falling 5.62%, marking yet another sharp decline. Tuesday’s Asian session is again seeing weakness, with both instruments down by about 0.85%.
Oil prices dipped on Tuesday following President Trump’s statement on Monday that he would be postponing any new military strikes against Iran for the time being. The remarks came after a number of regional countries, including Qatar (whose PM had a meeting with the President), had made appeals to the US to refrain from any further military action. The news has effectively allayed fears of a protracted disruption to Middle East supplies. Prices have been under significant pressure since the US mid-term elections, in which the Democrats took both the House and the Senate. There has also been a considerable amount of optimism about the prospects of a US-Iran deal, with the expectation that the new Democratic administration would be less inclined to fund military action against Iran. All of this, combined with a pickup in global crude supplies, means that prices are likely to remain under pressure in the short term.
Technically, WTI has broken below its recent lows near the $88.74 levels, breaching past a support zone near the same, suggesting a bearish market structure. Daily RSI remains below 50 and sloping downward, indicating heightened bearish momentum for now. Brent also suggests a similar market structure, breaking below the recent lows near $96.71, with RSI almost approaching oversold territory. Potential support could be near the $87.85 levels, marked by the lows of August-end.
The dollar index declined by almost 0.6% in yesterday’s session as oil fell by almost 5% to August lows, after traders weighed diplomatic efforts to end the US-Iran war. Lower oil prices can ease inflation expectations and Treasury yields, weighing on the dollar. It remains marginally lower in today’s session as investors look ahead to CPI data later today. Headline is expected at about +0.3% on the month and core at +0.2%, though some surveys have core at 0.3%. A core print of 0.3% or higher would strengthen the December hike case and likely push the dollar above Friday’s high. A soft core reading would reduce hike odds and could return the dollar toward 101.50. PPI follows on Friday, and Fed speakers are scheduled through the week.
Technically, the DXY is trading below its 9- and 21-day moving averages near $101.6. It is consolidating between 101.46 and 102.58. A daily close below 101.46 will signal further weakness for the index. The next support levels are observed directly near 98.6. Conversely, the bearish thesis is invalidated if the index defends the consolidation low of 101.46 and closes above the 21-day SMA level of 101.9.
