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Federal Reserve Holds Interest Rates Steady, Gold Sees 0.38% Downward Volatility, And Oil Prices Drop 1.5%


During the overnight session, the Federal Reserve decided to maintain its current interest rates as expected. However, policymakers anticipate two small rate hikes before the end of the year, signaling a more hawkish stance.  

Analysts suggest that the Fed may cut rates by 100 basis points in 2024, with inflation expected to recede rapidly.  

Overall, the rate outlook and forecasts may lead investors to anticipate a gradual 25 basis point rate increase starting from the Fed’s next policy meeting in July. 

Gold >>>

Today, spot gold continued its downward trend, opening at $1943.04 per ounce. In the morning, it reached a high of $1945.19 per ounce and a low of $1931.81 per ounce. Currently, it is trading at $1934.75 per ounce, with a decrease of 0.38%. 
There are signs of a breakdown in the gold price, breaking below yesterday’s low of 1938. This has strengthened the short-term downward trend.  

If it falls below the support level near the May 30th low of 1931.96, it may further decline toward the key level of 1900.  

However, it is important to note that the gold price is still within a range-bound period of nearly a month, which introduces significant uncertainty regarding its future direction.

Technical Analysis: 

  • Initiate a long position around 1942-1943, with a stop loss at 1935, and a target range of 1953-1955. 
  • For short positions, assess the market rebound and enter accordingly before the closing session. 

WTI Oil >>>

Crude oil traded around $68.4 today, experiencing a 1.5% decline on Wednesday. The drop came after unexpected data revealed a significant increase in U.S. crude oil inventories, coupled with the Federal Reserve’s projection of more interest rate hikes this year.  

These developments heightened concerns over demand, leading to a steep decline in oil prices during the latter part of the night, returning to a bearish stance.  

Looking at the daily chart structure, Tuesday’s bullish candlestick was short-lived due to the chaotic and disorderly fundamental landscape.  

The bulls have struggled to establish confidence amid the unclear fundamentals, and currently, the fundamentals appear relatively clear but bearish, suggesting the market may remain weak in the near term. 

Technical Analysis: 
Today, considering the high-altitude and low-long strategy: 

  • On the upside, keep an eye on the $70.4 level, with a potential breakout target at $71.8. 
  • On the downside, pay attention to the support levels at $68.0 – $66.1. If those levels are breached, the next target on the downside would be $63.8. 

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. 

 

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