Search Mark
Home / Market Insight

Gold Hits Six-Month High, Oil Prices End Four-Day Slide with Over 2% Gain 

The market is betting that the Federal Reserve will no longer raise interest rates, causing the U.S. dollar to fall to a three-month low. Gold prices continue their upward trend, reaching a new high in six months.  

Optimism in the market is boosted by the softening U.S. dollar and expectations of a potential extension of ongoing production cuts at the OPEC+ meeting, leading to a rise of over 2% in crude oil prices. 

Gold >> 

On Tuesday, spot gold closed up 1.33%, marking the fourth consecutive trading day of gains, settling at $2041.05 per ounce. December gold futures gained $27.60, a 1.4% increase, closing at $2040 per ounce, reaching a six-month high not seen since mid-May. 

The market widely anticipates that the Federal Reserve will maintain interest rates in December, with a roughly 50% likelihood of a rate cut in May next year.

The decreased opportunity cost of holding interest-free assets due to lower rates enhances the appeal of gold. The U.S. dollar index touched its lowest point since late August, making gold more affordable for overseas buyers. 

Gold exhibited a volatile upward trend today, stabilizing and rising around the $1911 mark before surging. After hovering around the $1920 level, gold broke through the daily high point of $2009, closing above it.

The daily chart driving the second wave of upward movement opens up further space for potential gains. In the short term, gold continues to maintain a strong posture, breaking through to around $2040 after a prolonged consolidation period. 

Technical Analysis: 

Today’s short-term strategy for gold suggests a primary focus on establishing long positions during pullbacks and considering short positions on high rebounds. 

  • Key resistance levels to watch in the short term are around 2050-2055. 
  • Key support levels to watch in the short term are around 2020-2025. 

WTI Crude Oil >>>

On Tuesday, international oil prices snapped a four-day losing streak, recording the first gain since OPEC+ postponed its meeting, and Brent crude reclaimed the $80 per barrel mark. WTI crude oil futures rose by $1.55 per barrel, a 2.07% increase, closing at $76.41 per barrel, while Brent crude oil futures gained $1.70 per barrel, a 2.1% increase, closing at $81.68 per barrel. 

OPEC and its allies, including Russia, are set to convene a remote meeting on Thursday primarily to discuss production levels for 2024. Originally scheduled for Sunday, the meeting was delayed due to disagreements on production targets for 2024.  

Market expectations are widespread that the prolonged five-week slump in oil prices, the longest since 2021, has prompted OPEC+ members to compromise. The meeting is anticipated to continue support for ongoing production cuts, with a particular focus on the possibility of Saudi Arabia and Russia agreeing to further reduce oil output. 

Crude oil rebounded swiftly, recovering within the range and testing the previous low at $73.80. During the U.S. session, it traded repeatedly, stabilizing above the $74.7 level, witnessing bullish acceleration. In the early morning hours, oil prices surged, breaking through the $76.2 level but facing resistance, leading to a retracement and oscillating closure. 

Technical Analysis: 

Today’s crude oil trading strategy suggests a primary focus on establishing long positions during pullbacks and considering short positions on high rebounds. 

  • Key resistance levels to monitor in the short term are around 78.0-79.0. 
  • Key support levels to monitor in the short term are around 75.0-74.0. 

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.    


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. 

Share to

Market Insight

Dollar Index Soars, Pressuring Gold and Oil Prices Down Nearly 1%

The Fed's reduced forecast for rate cuts this year led to a significant rise in the dollar index, putting further pressure on gold prices.

2024-6-14 | Market Insight

Gold and Oil Prices Fluctuate as Fed Keeps Rates Steady

Gold prices initially surged but then faced resistance as May CPI data showed a slowdown in inflation. The Fed announced it would maintain interest rates

2024-6-13 | Market Insight

Gold and Oil Rise Over 1% on Renewed Rate Cut Hopes

The Bank of Canada cut rates and the market expects the ECB to follow suit. This reduced the opportunity cost of holding gold, pushing prices up over 1%.

2024-6-6 | Market Insight