Oil steadies, gold slows and ASX 200 enters correction

(AI video summary)

This video was created on 10 September for IG audiences by ausbiz.

Oil prices spike before easing

Crude oil jumped after Israel targeted Hamas but gains quickly faded as both Israel and the United States (US) signalled no wider campaign. Prices remain range bound, with support at $61.45 and resistance near $66.03, while the 200-day moving average sits at $67.25.

Gold hits records but rally slows

Gold reached a record above $2367 but the relative strength index (RSI) shows overbought conditions, pointing to a maturing rally. Profit taking emerged before upcoming United States producer price index (PPI) and consumer price index (CPI) releases.

Markets still expect the Federal Reserve (Fed) to cut interest rates by up to 150 basis points (bp) through 2026, but sticky inflation could reduce that scope. Despite high bullion prices, local gold stocks showed little upside.

ASX 200 faces corrective phase

The Australia 200 (ASX 200) has underperformed global peers, failing to rebound from last week’s sharp sell off. Despite being 25% above April lows, there's room for a 5% pullback towards 8630 before the uptrend can resume.

Aussie dollar eases; Bitcoin consolidates 

The Australian dollar briefly rose above $0.6620 but retreated as the US dollar strengthened on labour market revisions. Traders remain cautious ahead of inflation data, with hotter results likely to support the greenback.

Bitcoin has held in a tight $110,000 to $113,500 range, unusual for the cryptocurrency. Consolidation could last another month or two after the August peak at $124,000.