Markets Experience an Increased Attraction to Gold as a Safe Haven

Market News Summary

On Tuesday, European stocks faced a decline due to a combination of pessimistic profit forecasts and the ascent of government bond yields. These factors eclipsed the gains made by energy stocks and a minor alleviation of concerns linked to the Middle East conflict, ultimately resulting in a 0.1% decrease in the Stoxx 600 index.

By 2025, the Swedish capital, Stockholm, plans to prohibit diesel and gasoline-powered vehicles from entering the central part of the city as part of efforts by the authorities to reduce environmentally harmful emissions, which may impact oil prices if more countries adopt such policies in the future.

Dollar Index (USDX)

The markets are currently awaiting the speech of the U.S. Federal Reserve Chairman scheduled for tomorrow, Thursday, to glean insights into interest rates. Meanwhile, factory production in the United States and retail sales in September exceeded expectations, indicating that the economy concluded the third quarter on a strong note.

The dollar index is currently trading below its pivotal point at $105.90.

Pivot Point: 106.00

Resistance level	Support level
106.25	105.75
106.50	105.50
106.75	105.25

Spot Gold (XAUUSD)

Gold prices rose on Wednesday, October 18, following a deadly explosion in Gaza that heightened concerns about regional escalation. This led to a continued preference among anxious investors for the precious metal as a safe haven despite strong U.S. economic data and interest rate expectations.

In spot trading, gold climbed 0.4% to $1,929.89 per ounce, while U.S. gold futures surged 0.4% to $1,942.70.

Pivot Point: 1922

Resistance level	Support level
1932	1912
1941	1903
1951	1893

Dow Jones Index (DJ30ft – US30)

On Tuesday, U.S. indices closed with marginal fluctuations and a leaning toward decline, as increasing bond yields raised concerns about the long-term sustainability of high-interest rates. Prior data had indicated that U.S. retail sales in September surpassed expectations, with households increasing their spending on car purchases and dining out.

The Dow Jones index edged up by only 0.04%, equivalent to about 13 points, but recorded its highest closing in three weeks. The Nasdaq index declined by approximately 0.25%, while the S&P 500 closed with little change, with four out of its ten main sectors posting losses.

Pivot Point: 34135

Resistance level	Support level
34305	33965
34470	33795
34640	33625

US Crude Oil (USOUSD)

Oil prices rose on Tuesday ahead of the visit of U.S. President Joe Biden to the Middle East. During this visit, he is expected to seek a balance between providing support to Israel and preventing any escalation in the region due to the conflict with Hamas.

After declining by over a dollar on Monday, Brent crude futures increased by 25 cents, settling at $89.90 per barrel, the same level as the previous day’s closing. Meanwhile, there was no change in the price of U.S. West Texas Intermediate crude, which remained at $86.66 at the close of trading.

Pivot Point: 87.00

Resistance level	Support level
88.40	86.25
89.15	84.85
90.55	84.15

Risk Warning

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