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Escalating Safe-Haven Sentiment Supports Gold Prices, Demand Concerns Lead to Over 3% Drop in Oil Prices 

Despite the decline in U.S. bond yields, gold prices continue to fluctuate around USD 2030 per ounce, restrained by the strengthening U.S. dollar.  

Concerns over market demand ignited as Saudi Arabia lowered its selling price, leading to a double decline in international oil prices, with U.S. crude falling more than 4%. 

Gold >>  

On Tuesday, U.S. economic data indicated improved confidence among small businesses and a narrowing trade deficit, impacting the dynamics of gold. The market awaits U.S. CPI data to seek further direction, and the price of gold may be influenced by inflation expectations.  

Spot gold closed up 0.11%, settling at USD 2030.23 per ounce. Gold futures, however, fell 0.02%, closing at USD 2033 per ounce. Despite the decline in U.S. bond yields, gold prices continue to fluctuate around USD 2030 per ounce, restrained by the strengthening U.S. dollar.  

Amidst risk aversion and a broadly strengthening U.S. dollar, gold prices continued to rise by more than 0.15% during the North American session on Tuesday. On the technical front, gold experienced highs during volatile trading, breaking through the resistance at USD 2041 and subsequently pulling back.  

During the Asia-Europe session, prices fluctuated and rebounded slightly around the USD 2030 level, recovering after the initial decline.  

In the afternoon, there was a slow climb with a minor increase, ultimately accelerating during the late U.S. session to break through the USD 2041 level, facing pressure, and closing with a pullback, breaking the bottom in a range-bound manner. 

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 2045-2050. 
  • Key support levels to watch in the short term are around 2025-2020. 

WTI Crude Oil >>  

On Tuesday, international crude oil prices fell by over 3% due to significant price cuts by Saudi Arabia, the largest exporter, and increased OPEC production, offsetting concerns about the supply disruptions from the escalating geopolitical tensions in the Middle East.  

U.S. crude oil closed at USD 70.77 per barrel, down 4.12% or USD 3.04 per barrel, with an intraday low of USD 70.12 per barrel. Brent crude reported USD 76.12 per barrel, down 3.35% or USD 2.64 per barrel. 

Saudi Aramco, the national oil company of Saudi Arabia, announced a reduction in the flagship crude oil prices for February to all buyers worldwide. The selling price of the flagship Arab Light crude oil to Asia was reduced by USD 2 per barrel.  

Additionally, Saudi Aramco lowered crude oil prices for February. These measures reignited concerns about oversupply in the oil market, overshadowing the positive factors from shipping companies avoiding the Red Sea route. 

On the technical front, oil prices stabilized around the USD 70.5 level, witnessing a strong one-sided upward movement. During the late European and American trading sessions, there was an accelerated rally, breaking through and holding above the USD 72 level, continuing the bullish rebound.  

Eventually, during the late U.S. session, there was a rapid surge, breaking through the USD 72.9 level but facing resistance, followed by a pullback to retest the USD 71.4 level before closing with volatile oscillations. 

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 73.5-74.5. 
  • Key support levels to monitor in the short term are around 70.5-69.5. 

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.    


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. 

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