The American Petroleum Institute (API) released its weekly crude oil inventory figures, showing an increase of 1.019 million barrels, exceeding market expectations of a 1.14 million barrel decrease. Gasoline inventories also rose, increasing by 2.991 million barrels, exceeding market expectations of a 541,000 barrel decrease. These strong figures should alleviate investor concerns about a significant interest rate hike by the Federal Reserve, providing important support for gold prices around $4,127 in the short term.

If the September ADP private sector job growth data, released later tonight, shows lower than expected and last times’ figures, a less-than-ideal job market condition will also reduce negative sentiment among investors regarding a potential Fed rate hike, which will further supporting gold prices.

Gold prices may fluctuate between $4,127 and $4,236 in the short term. Pay close attention to potential entry opportunities at the lower end of this range, as there is room for a short-term rebound. $4,107 can serve as a key support level; appropriate risk management is essential.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for market observation and do not constitute investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com