Oil Prices Surge and Gold Shines as Interest Rates to be Announced this Week

market news summary

Goldman Sachs bank believes that the Federal Reserve is unlikely to raise interest rates at its upcoming meeting scheduled for early November. Goldman Sachs also expects the Federal Reserve to revise its US growth projections to 2.1% for the current year, compared to the previous expectations of 1%.

Turkish President Recep Tayyip Erdoğan has invited Elon Musk, the CEO of Tesla, the electric car company, to open a factory in Turkey, according to Turkish media agencies. Erdoğan extended the invitation during a meeting at the Turkish House building, which is a skyscraper near the United Nations headquarters in New York.

Dollar Index (USDX)

The dollar declined by 0.3% against its competitors after US data released earlier last week. Investors are looking forward to the statement from the Federal Open Market Committee (FOMC) this week, as well as the economic projections from the FOMC to determine future interest rate movements.

The dollar index is currently trading below its pivot point at $104.85 with a horizontal movement.

Pivot point: 104.90

Resistance level	Support level
105.10	104.75
105.25	104.50
105.60	104.30

Spot Gold (XAUUSD)

Gold prices rose at the end of Friday’s trading session, supported by a weaker dollar and safe-haven buying as the United Auto Workers union began strikes at three automakers in Detroit. Hopes of a potential pause in U.S. interest rate hikes also provided further support.

In spot trading, gold rose by 0.9% to $1,927.79 per ounce. The metal has increased by about 0.6% since the beginning of the week. U.S. gold futures settled up 0.7%, or $13.40, at $1,946.20 per ounce.

Pivot point: 1921

Resistance level	Support level
1932	1911
1941	1900
1953	1891

Dow Jones Index (DJ30ft – US30)

U.S. stock futures rose at the beginning of the week as investors are looking ahead to the upcoming policy decision from the Federal Reserve.

Futures linked to the Dow Jones Industrial Average added 29 points, or nearly 0.1%. The S&P 500 index futures also gained 0.1%, while Nasdaq 100 futures were up 0.06%.

Pivot point: 35055

Resistance level	Support level
35235	34765
35530	34590
35705	34295

US Crude (USOUSD)

Oil prices have reached their highest level in 10 months, with Brent crude touching the $94 per barrel mark, as expectations of a supply shortage continue into the fourth quarter of this year.

The French government plans to allow the sale of fuel at a loss, bypassing a law dating back to 1963, as it struggles to find new ways to contain inflation without adding large amounts of public money that have already been spent.

Pivot point: 89.85

Resistance level	Support level
91.05	89.15
91.75	87.90
92.95	87.25

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