Search Mark
Home / Market Insight

Gold Down 1%, Oil at Four-Month Low

Gold Down 1%, Oil at Four-Month Low

On June 5, gold prices fell more than 1% as the dollar stabilized ahead of US employment data due later this week, which could influence the Federal Reserve’s rate strategy. Oil prices also dropped more than $1, marking the fifth consecutive day of decline and setting a new four-month low.


Spot gold is currently trading at around $2328.13 per ounce in narrow fluctuations. The dollar index stabilized after falling to its lowest point since mid-April, making gold more expensive for overseas buyers.

Investors are now waiting for Friday’s US non-farm payroll data to clarify the outlook for rate cuts. Lower rates reduce the opportunity cost of holding non-yielding gold.

Analysts suggest that the overall decline in commodities, led by oil, may have contributed to bearish sentiment in precious metals. However, after the U.S. data was released overnight, market expectations for a Fed rate cut in September increased, helping gold rebound from $2315 to above the $2320 level, closing at $2326.62 per ounce on Tuesday.

Gold Technical Analysis:

Yesterday, gold did not continue its rebound. Instead, it fluctuated and faced pressure at the $2350 level during the Asian and European sessions, leading to a downward move. In the afternoon, it further broke through the $2340 level, weakening.

In the evening U.S. session, gold attempted a second rebound but faced resistance at $2337, continuing to fall and closing lower. The daily K-line chart shows a bearish engulfing pattern, with prices weakly fluctuating downwards around the $2350 level. The short-term top is established around the $2350-$2360 area, and today’s strategy remains focused on shorting rebounds.

Gold Down 1%, Oil at Four-Month Low

Today’s Focus:

  • Short-term strategy: Maintain the strategy of shorting rebounds.
  • Resistance: $2350-$2353
  • Support: $2341-$2337


International oil prices are hovering at low levels, with WTI crude currently trading around $73.12 per barrel. On Tuesday, oil prices fell more than $1, marking the fifth consecutive day of decline and hitting a new four-month low. This decline comes amid signs of weakening global demand and skepticism over OPEC+’s decision to increase supply later this year.

The OPEC+ alliance, comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, agreed on Sunday to extend most production cuts until the end of 2025 but left room for eight member countries to gradually lift voluntary cuts starting in October.

Oil Technical Analysis:

Oil prices continued their recent weak downward trend, with persistent declines during the Asian and European sessions. In the evening U.S. session, oil prices were suppressed, fluctuating below the $73.5 level, closing at the day’s low.

The overall price trend remains bearish, with a focus on the resistance around $73.7-$73.9. Intraday rebounds are expected to face resistance at this level, with the main trend remaining downward. The short-term bearish threshold is at $74.5.

Gold Down 1%, Oil at Four-Month Low

Today’s Focus:

  • Short-term strategy: Maintain the trend-following strategy.
  • Resistance: $73.7-$73.9
  • Support: $74.5

Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.

Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.

This information is addressed to the general public solely for information purposes and should not be taken as investment advice, recommendation, offer, or solicitation to buy or sell any financial instrument. The information displayed herein has been prepared without any reference or consideration to any particular recipient’s investment objectives or financial situation. Any references to the past performance of a financial instrument, index, or a packaged investment product shall not be taken as a reliable indicator of its future performance. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, make no representation or warranties to the information displayed and shall not be liable for any direct, indirect, special or consequential loss or damages incurred a result of any inaccuracies or incompleteness of the information provided, and any direct or indirect trading risks, profit, or loss arising from any individual’s or client’s investment.

Share to

Market Insight

Gold Tests $2330, Oil Peaks then Pulls Back

Gold tested the $2330 level multiple times but fell back towards the close, ending down 0.04%. Oil hit a near seven-week high during the session

2024-6-20 | Market Insight

Gold Rises on Rate Cut Hopes, Oil Rebounds Above $80

US retail sales data fell short of expectations, reinforcing hopes for a Fed rate cut this year, pushing gold prices up by 0.45%.

2024-6-19 | Market Insight

Hawkish Fed Pressures Gold, Oil Rises Over 2%

Hawkish comments from Fed officials helped boost US Treasury yields, causing gold to fall by 0.6%. Investor optimism about demand prospects drove US crude up

2024-6-18 | Market Insight