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Five Consecutive Declines for the U.S. Dollar, Slight Dips in Gold and Crude Oil


The U.S. dollar sees its fifth consecutive decline, marking its largest drop in seven months. Gold experiences fluctuations and ends slightly lower, driven by rising investor risk aversion and dovish statements from Fed officials.  

Oil prices also retreat slightly as concerns about crude supply disruptions ease among investors. The market is now focused on this week’s release of the September Fed meeting minutes and CPI data. 

Gold >> 

With increased investor risk aversion and a series of dovish statements from Fed officials, the U.S. dollar continues its fifth consecutive day of decline, marking its largest drop since May.  

On Tuesday, gold prices experienced fluctuations as demand for safe-haven assets rose, with spot gold trading at $1,860.42 per ounce, down 0.04%, while December gold futures gained 0.59%, closing at $1,875.30 per ounce. 

As market attention shifts to the Middle East, heightened tensions disrupt global markets, providing continued support for precious metals futures driven by safe-haven buying. However, some investors are cautiously returning to higher-risk assets, awaiting further clues about the Fed’s policy stance. On Tuesday, gold prices held near one-week highs. 

The market is closely watching speeches from Fed officials, the release of Fed meeting minutes, and the U.S. inflation data set to be published on Thursday. 

Gold prices, which had bottomed near $1,810 last week, have been on an upward trajectory due to increased risk aversion. Yesterday, gold opened higher and continued its upward trend, with daily gains, following a stabilization around the $1,810 level.  

Gold opened higher, corrected, and further refreshed its high to $1,862 after yesterday’s consolidation. In early trading today, it made a slight push upwards to $1,865. 

Technical Analysis: 

Today’s gold short-term trading strategy suggests prioritizing short positions on rebounds, with long positions on pullbacks as a secondary approach. 

  • Key resistance levels to watch in the short term are around 1870-1876. 
  • Key support levels to watch in the short term are around 1840-1845. 

WTI Crude Oil >> 

On Tuesday, concerns about interruptions in crude oil supply eased slightly, leading to a minor dip in oil prices, although the market remained cautious. Brent crude oil closed at $87.65 per barrel, down by $0.50 or 0.57%, while WTI crude oil closed at $85.97 per barrel, down $0.41. 

The market is closely monitoring the situation in the Middle East, and oil prices have seen significant volatility amid escalated risks. After a substantial increase on Monday, prices retreated on Tuesday.  

Concerns about crude oil supply disruptions have lessened, but market sentiment remains relatively cautious. Investors have not engaged in aggressive selling but are closely watching further developments. 

Analysts suggest that the Israel-Palestine conflict may exacerbate inflation and inhibit economic growth. Additionally, any oil-producing nation, led by Saudi Arabia, could drive crude oil prices even higher, causing negative inflationary impacts on Western nations. 

From a technical perspective, crude oil prices oscillated within a range the previous day. The high point encountered resistance around $86.71, while the low point found support around $85.20.  

Crude oil prices closed with a small positive candlestick, breaking through the previous upward channel’s lower boundary but with a slight pullback in the closing, resulting in an upper shadow.  

It is anticipated that in the coming days, there may be repeated candlestick patterns resembling this one, with the potential for repeated upward momentum. 

Technical Analysis: 

Today’s crude oil trading strategy suggests focusing primarily on long positions on pullbacks, with short positions on high rebounds as a secondary approach. 

  • Key resistance levels to monitor in the short term are around 87.0-88.0. 
  • Key support levels to monitor in the short term are around 84.0-83.0. 

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. 

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