The dollar and US Treasury yields retreated, providing a rebound opportunity for gold prices, which rose by 0.5%; the EIA released the short-term energy outlook for February, lowering the forecast for US crude oil production in 2024.
Oil prices hit an intraday high but subsequently fell shortly after, ending the day with a slight increase.
On Tuesday, the US dollar and Treasury yields fell, providing a rebound opportunity for gold prices, which rose by 0.5%, closing at USD 2035.78 per ounce, recovering some of Monday’s losses; COMEX gold futures rose by 0.47% to USD 2052.5 per ounce.
Traders are awaiting speeches from several Federal Reserve officials this week to gauge the potential pace of interest rate cuts this year.
The US has expanded its actions against the Houthi armed group, while Houthi leaders have stated that if Israeli attacks on Gaza do not cease, their actions will escalate further.
After a sharp decline in the past week and a heavy drop in the first two days of this week, gold prices have stabilized at lower levels.
The pause in the rise of the US dollar, strong US data, and hawkish Fed rhetoric have continuously pushed back expectations of interest rate cuts this year, with the expected rate cut also being revised down. The market is currently focusing on the possibility of gold prices testing key support levels.
Gold’s technical aspect saw a rebound in volatile trading, with prices pressured below the USD 2029 level during the Asian-European session, quickly falling, probing towards the USD 2022 level in the afternoon and entering sideways trading.
In the late US session, prices stabilized around the USD 2022 level and rebounded in volatile trading, accelerating upwards overnight to break through and hold above the USD 2030 level. The rebound continued to around USD 2038 before closing strongly.
Today’s short-term strategy for gold suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks.
- Key resistance levels to watch in the short term are around 2044-2050.
- Key support levels to watch in the short term are around 2015-2020.
WTI Crude Oil >>
On Tuesday, international crude oil futures rose. The main contract settlement price for US WTI crude oil futures was USD 73.31 per barrel, up USD 0.53 or 0.7%; the main contract settlement price for Brent crude oil futures was USD 78.59 per barrel, up USD 0.60 or 0.8%.
The EIA released the short-term energy outlook for February, lowering the forecast for US crude oil production in 2024 while slightly increasing the expected global crude oil demand for this and next year. This led to a fresh intraday high for oil prices.
However, shortly afterward, there were reports in the market regarding Hamas’s response to a ceasefire, causing oil prices to quickly dive. Subsequently, the market engaged in back-and-forth discussions on this topic, making it the focus of short-term market attention.
Ultimately, oil prices closed slightly higher, continuing the trend of volatile rebounds. Early morning API inventory data showed a slight increase in crude oil inventories but lower than expected, with oil prices reacting minimally to this news.
On the technical front, oil prices saw a rebound and recovery amid volatile trading. During the European session, prices quickly retraced and stabilized near USD 72.3 before rebounding.
In the late US session, prices oscillated upwards, breaking through the USD 73.5 level and reaching a strong close near USD 73.8.
Today’s crude oil trading strategy suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks.
- Key resistance levels to monitor in the short term are around 74.5-75.0.
- Key support levels to monitor in the short term are around 72.0-71.5.
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