On the first trading day of November, US crude oil prices reversed the upward trend of the last week of October, even recording a drop of more than $7 per barrel from their highs. This sharp drop in oil prices is undoubtedly good news for interest rate-sensitive investors, as it suggests a cooling of the inflation outlook driven by energy prices. This implies that market participants may infer that the Federal Reserve may not need to take aggressive steps to raise interest rates. With the expectation that interest rates will not rise rapidly, interest in buying gold at lower prices should be boosted to some extent.

If US oil prices continue to decline in the short term, gold prices should find support around $3,898.

Gold prices may fluctuate between $3,898 and $3,981 in the short term. Pay close attention to the lower end of this range for potential buying opportunities. There is room for short-term upward movement, and $3,878 can be considered an important price defense reference point; be sure to manage risk accordingly.

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

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst

Success Financial Group

Email: ferris.kwok@successfn.com