Gold Loses Momentum and Is Being Traded Below $1980

Market News Summary

Most of the European stock indices rose at the end of Tuesday’s trading session as companies’ earnings results were being closely monitored. However, the broader index recorded a monthly loss, and government data released today showed that the preliminary reading of the Gross Domestic Product (GDP) for the third quarter in the Eurozone increased by 0.1%. Meanwhile, retail sales in Germany dropped by 0.8% in September.

On Tuesday, the U.S. Energy Information Administration stated that domestic crude oil production in the United States rose to a new monthly record level at 13.05 million barrels per day.

Dollar Index (USDX)

The Federal Reserve has started its two-day monetary policy meeting with widespread expectations of maintaining unchanged interest rates. This comes amidst keen anticipation for Jerome Powell’s speech, as market participants seek signals regarding the future direction of monetary policy.

The dollar index is trading positively above its pivotal point at $105.50.

Pivot Point: 106.30

Resistance level	Support level
106.90	105.90
107.25	105.35
107.85	104.95

Spot Gold (XAUUSD)

Under pressure from the rising dollar and market anticipation surrounding the Federal Reserve committee meeting results, gold has reverted to trading below the $2000 per ounce mark. However, investors remain cautious due to gold’s sensitivity to any new geopolitical developments in the Middle East.

Currently, gold is trading below its pivotal point at $1977 per ounce.

Pivot Point: 1989

Resistance level	Support level
2001	1972
2018	1961
2030	1943

Dow Jones Index (DJ30ft – US30)

The US indices closed with collective gains in Tuesday’s session ahead of the Federal Reserve’s interest rate decision on Wednesday amid mixed corporate financial results. A total of 279 companies listed on the S&P 500 index announced their earnings, with over 78% of these results surpassing Wall Street’s expectations.

The Dow Jones Industrial Average rose by 0.38%, equivalent to 124 points, marking gains for the second consecutive session. However, it has declined by about 1.4% in October, leading to its third consecutive monthly loss.

Pivot Point: 33055

Resistance level	Support level
33250	32895
33405	32705
33595	32545

US Crude Oil (USOUSD)

Oil prices fell at the Tuesday close as concerns over supply disruptions due to conflicts in the Middle East diminished. Additionally, data indicating an increase in production from both the Organization of the Petroleum Exporting Countries (OPEC) nations and the United States contributed to the decline.

Brent crude futures dropped by $1.33, or 1.4%, to $85.02 per barrel. Similarly, West Texas Intermediate (WTI) crude futures decreased by $1.29, or 1.6%, to $81.02 per barrel.

Pivot Point: 81.80

Resistance level	Support level
82.85	80.25
84.40	79.20
85.50	77.65

Risk Warning

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