Due to a significant rebound in U.S. single-family housing starts in February, reaching nearly a two-year high, the dollar strengthened, causing a slight retreat in gold prices. The market awaits the Federal Reserve interest rate decision and Chairman Powell’s speech.  

Furthermore, due to escalated attacks by Ukraine on Russian oil refineries, oil prices rose to multi-month highs for the second consecutive trading day, closing slightly higher. 

Gold >> 

On Tuesday, due to a significant rebound in U.S. single-family housing starts in February, reaching nearly a two-year high, the dollar strengthened, causing a slight retreat in gold prices.  

Spot gold fell by 0.13%, closing at USD 2157.40 per ounce, with the intraday low touching USD 2147.03 per ounce. In early Asian trading on Wednesday, spot gold traded narrowly, currently hovering around USD 2157.80 per ounce. 

According to the U.S. Census Bureau, single-family housing starts, which make up the core of residential construction, surged by 11.6% month-over-month in February, seasonally adjusted to an annual rate of 1.129 million units, the highest since April 2022.  

The dollar rose by 0.2%, briefly touching a high of 104.06 earlier in the session, making gold more expensive for overseas buyers.  

Although the market widely expects the Federal Reserve to maintain interest rates unchanged tonight, market participants are awaiting comments from Fed Chair Powell after the meeting to understand the Fed’s latest rate expectations. 

Gold initially opened with a brief uptick to around USD 2157, then retreated to around USD 2146 with brief fluctuations before rebounding in the afternoon Asian session.  

Gold rose alongside the late U.S. session to yesterday’s high of USD 2163, then moderated slightly before consolidating at the high levels during the U.S. session, closing at USD 2160. 

Technical Analysis: 

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 2170-2178. 
• Key support levels to watch in the short term are around 2140-2130. 

WTI Crude Oil >>  

On Tuesday, oil prices rose for the second consecutive trading day to multi-month highs as Ukraine escalated attacks on Russian oil refineries.  

The April contract for U.S. crude oil futures rose by USD 0.75, or 0.9%, to close at USD 83.47 per barrel, while Brent crude oil futures gained 0.6% to settle at USD 87.38 per barrel. 

Ukraine has intensified its attacks on Russian oil infrastructure this year, with at least seven refineries becoming targets of drone attacks this month alone. These attacks have resulted in a 7% shutdown of Russia’s refining capacity, equivalent to approximately 370,500 barrels per day.  

According to Hodes’ calculations, attacks on Russian refineries could lead to a global oil supply reduction of around 350,000 barrels per day and increase U.S. crude oil prices by USD 3 per barrel. Crude oil prices continued their upward trend on the daily chart, maintaining strength after breaking through previous highs.  

Following a brief period of consolidation with a doji candlestick pattern last Friday, this week opened with weakness but remained stable above the breakout point of USD 80.50. During the U.S. session, prices surged to a new high of USD 82.50 and closed near the highs.  

The daily chart shows two consecutive bullish candles sandwiching the doji candlestick, indicating a continuation of the uptrend. On the 4-hour chart, prices rallied strongly around the middle band, with yesterday’s consolidation above the USD 81.0 level replacing the retracement. 

Technical Analysis: 

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 84.5-85.0. 
• Key support levels to monitor in the short term are around 82.5-82.0. 

Forward-looking Statements    
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.     

Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.     

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.    

 
Disclaimer    

While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.