【Morning Session】Bank of America has collapsed Gold prices have hit new highs

Gold:
Bank of Treasury & Trust, underwritten by a bank in San Diego, California, has recorded a $50 million impairment charge on a loan, sparking fears of another crisis in the US financial system and boosting safe-haven sentiment.

The latest Federal Reserve Beige Book indicates a slight decline in US consumer spending and generally subdued labor demand. The drop in consumer spending suggests pessimism about future economic prospects, while the weak labor market hints that the Fed may still need to adopt accommodative policies to reverse the downturn in the job market.

Chen Yu, senior analyst of Zhisheng Research (exclusively invited by Plotio), believes that risks in the US financial system are driving safe-haven demand, making it highly likely that gold will maintain its short-term strength.

Technically: On the daily chart, the price rose strongly and closed in positive territory yesterday, indicating strong bullish momentum. Indicators show the moving average system is in a bullish alignment, suggesting a high probability of continued strength in the short term. Intraday, watch for a pullback to test the support level around $4,335.

Gold hourly chart

Crude Oil:
This morning's US EIA crude oil inventory data for the week ending October 10 showed an increase of 3.524 million barrels, compared to market expectations of a 288,000-barrel increase and a previous reading of a 3.715-million-barrel increase, weighing on oil prices. Currently, refineries in Europe and the US are entering maintenance season, leading to cooler crude oil demand. The crude oil market is likely entering a phase of inventory accumulation, which is unfavorable for price increases.

Although geopolitical uncertainties remain, they are more likely to limit price declines rather than drive gains.

Additionally, US crude oil production stands at 13.62 million barrels per day, OPEC+ production is steadily rising, and Brazilian output is also increasing. Risks of a crude oil supply surplus remain high, posing further downside risks for oil prices.

Technically: On the daily chart, prices have been declining for several consecutive trading days, indicating short-term bearish dominance. Indicators show the price broke below the 20-day moving average and has struggled to rebound, suggesting bears still hold the advantage intraday. Watch the resistance level around $58.26 and the support level around $55.

Crude oil hourly chart

Copper:
On the daily chart, prices have been consolidating at relatively high levels for several consecutive trading days, and this trend is likely to continue in the short term. Indicators show the price is testing the 20-day moving average. If it holds above this level, there is a chance for further gains. Intraday, watch the support level around $4.90.

Nikkei 225:
On the daily chart, prices have been oscillating higher in recent trading sessions, showing relative strength. Indicators show the price previously tested the 62-day moving average as support and subsequently moved higher, suggesting a high probability of further gains. Intraday, watch the support level around 47,554.

[Important Disclaimer:The above content and views are provided by Zhisheng, a third-party cooperative platform, for reference only and do not constitute any investment advice. Investors who trade based on this information shall bear their own risks.]

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