Gold Rebounds from $4,125 Low as Oil Prices Wobble in Tight Range Amid Washout Fears

Deep News
2 hours ago

Spot gold: On October 5, during the European session, gold remained broadly in a low-range consolidation with rebounds facing resistance.

After last Friday's weaker-than-expected non-farm payrolls data, gold prices briefly surged to around $4,226 but then quickly pulled back, indicating insufficient bullish follow-through; the current short-term rebound momentum is relatively weak, making intraday trading more suitable for tracking a range-bound, sell-on-rebound bias.

Spot gold fluctuated repeatedly between $4,140 and $4,160 per ounce during the Asian and European sessions, with an intraday high of around $4,163–$4,170 and a low of around $4,125–$4,132.

Last week, gold fell approximately 3.4% cumulatively, closing the week in the red, and the short-term structure has not yet reversed.

The current market is being pulled by several forces: mixed bearish and bullish non-farm signals, still-elevated dollar and Treasury yields, Middle East geopolitical risks providing bottom support, but G7-coordinated release of strategic petroleum reserves capping some of the energy premium.

Overall, gold is better observed around the $4,100–$4,200 range for highs and lows, prioritizing short positions on rebounds facing resistance, and considering short-term long repair trades only if pullbacks hold support.

Key levels:

Resistance: $4,192, $4,225

Support: $4,125, $4,090

Entry points/ranges: Aggressive short at $4,192 ± 5, stop loss $4,202, target $4,140, hold if broken! Aggressive long at $4,125 ± 5, stop loss $4,110, target $4,165, hold if broken! [GOLD dividing line: $4,166 per ounce! Note: The above views are for reference only; in extreme market conditions, strictly manage risk.]

WTI crude oil: During the European session, crude oil remained broadly in a gap-up-then-pullback pattern, with pulse-style rallies followed by resistance-driven consolidation.

Brent crude touched an intraday high of $103.40 per barrel and has now pulled back to around $101.6–$102.0 per barrel; WTI fell from around $91.88 per barrel and is currently trading in the $89.3–$89.8 per barrel range.

Crude oil is not suitable for a simple one-sided view right now, as the market is being pulled by two forces: First, supply recovery is pressuring prices: the G7 agreed to release 100 million barrels of crude and diesel reserves; Middle East crude exports exceeded pre-war levels for multiple days in the final week of September; Hormuz Strait flows are recovering; Saudi Aramco cut its November Asian crude selling price and widened discounts, signaling a fight for market share.

Second, geopolitical risks are underpinning oil prices: Houthi attacks on Saudi Aramco facilities, with Yemeni government forces announcing a counteroffensive; tanker attacks still occurring in the Hormuz Strait; OPEC+ maintaining November production unchanged, but actual increases are mostly "paper increases," with a real supply gap still present.

So the European session price action shows: after geopolitical headlines push prices up, supply-side signals quickly drive them back down.

Key levels:

Resistance: $92.0, $94.0

Support: $88.0, $86.0

Entry points/ranges: Aggressive short at $92.0 ± 0.2, stop loss $93.0; conservative short at $94.0 ± 0.2, target $89.0, hold if broken! Aggressive long at $89.0 ± 0.2, stop loss $88.0, conservative long at $86.4 ± 0.2, target $92.0, hold if broken! [WTI dividing line: $91.0 per barrel! Note: The above views are for reference only; in extreme market conditions, strictly manage risk.]

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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