On Thursday, spot gold traded near $4,337/oz during Wednesday’s session. Precious metals rallied broadly as weaker US labor data reinforced expectations for future Federal Reserve rate cuts, while escalating tensions between the US and Venezuela boosted safe-haven demand. Gold surged nearly 1% intraday, while spot silver jumped almost 4%, breaking above $66/oz for the first time and hitting a record high of $66.86/oz.
Meanwhile, WTI crude traded around $56.78/barrel, with oil prices climbing nearly 3% on Wednesday after fresh US actions targeting Venezuela intensified geopolitical risks and offered short-term support to oil markets.
Gold
Precious metals posted strong gains on Wednesday, supported by rising expectations of Fed rate cuts following soft US labor data and heightened geopolitical tensions linked to Venezuela. Spot silver led the rally, surging nearly 4% to a fresh all-time high, while gold prices followed higher, with spot gold settling up 0.7% after gaining more than 1% intraday.
Market analysts noted that silver’s explosive rally is increasingly driving the broader precious metals complex. Marex analyst Edward Meir said some capital is rotating out of gold into silver, platinum, and palladium, adding that $70/oz could be a reasonable short-term target for silver. Platinum also climbed to its highest level in more than 17 years.
US labor data released on Tuesday showed the unemployment rate rising to 4.6% in November, the highest since September 2021, despite stronger-than-expected job creation. Signs of cooling in the labor market strengthened expectations for Fed rate cuts, supporting precious metals. In addition, US President Donald Trump ordered a “blockade” on sanctioned vessels entering and leaving Venezuela, escalating geopolitical tensions and further lifting safe-haven demand.
Gold Technical Analysis:
From the daily chart, spot gold printed a doji candlestick, reflecting consolidation after the recent advance. Despite a brief pullback, prices remained above the 5-day moving average, while the MACD continued to hold a bullish crossover, suggesting further upside potential. On the 4-hour chart, gold retreated after facing resistance near $4,354, but found solid support around $4,270. Overall, prices remain in a wide consolidation range, and the mixed impact of recent labor data may extend gold’s sideways movement in the near term.
Today’s Gold Focus:
Trading Strategy:
Prefer selling on rebounds, with buying on dips as a secondary approach.
- Near-term resistance: $4,360 – $4,380
- Near-term support: $4,310 – $4,290
Crude Oil
Oil prices rose nearly 3% on Wednesday, driven mainly by escalating geopolitical tensions. US President Donald Trump ordered a “blockade” of sanctioned tankers traveling to and from Venezuela, raising concerns over Venezuelan crude supply and temporarily easing fears of global oversupply.
At the close, Brent crude climbed 2.97% to $60.58/barrel, while WTI crude gained 2.85% to $56.74/barrel. The latest US actions targeting Venezuela added to global political uncertainty and provided short-term support for oil prices.
However, several energy analysts remain cautious about the sustainability of the rally. According to Kpler, the measures alone are unlikely to materially tighten global supply or drive a lasting surge in prices, as Venezuelan output accounts for only about 1% of global supply and alternative shipping routes may circumvent sanctions.
Meanwhile, data from the US Energy Information Administration (EIA) showed gasoline and distillate inventories rose more than expected last week, capping further upside in oil prices. Broader pressure remains from weak global demand and expectations that a potential Russia-Ukraine peace deal could ease sanctions and bring additional supply back to the market. As a result, this geopolitically driven rebound may prove short-lived.
Technical Analysis:
On the daily chart, crude has posted four consecutive bearish sessions, breaking below the key $56 medium-term support level. The moving average system remains in a bearish alignment, confirming a downward medium-term trend. On the intraday chart, prices continue to trend lower, with MACD momentum remaining firmly bearish. Early trading shows oil consolidating near $55, and further downside toward fresh lows remains likely.
Today’s Focus:
Trading Strategy:
Prefer selling on rebounds, with buying on dips as a secondary approach.
- Near-term resistance: $58.0 – $59.0
- Near-term support: $56.0 – $55.0
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