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Gold Posts Three Consecutive Daily Gains, WTI Crude Rises Over 2%


Gold Posts Three Consecutive Daily Gains, WTI Crude Rises Over 2%

Gold

On Tuesday, aided by a weaker dollar and safe-haven buying due to geopolitical concerns, gold prices continued to rebound, recording three consecutive daily gains. However, the overall rise in gold remained limited.

Spot gold climbed for the third consecutive trading day, reclaiming the $2360 mark, and ultimately closed up 0.44% at $2361.28 per ounce.

The dollar index dipped to a more than one-week low of 104.33 during Tuesday’s session, making gold cheaper for holders of other currencies. However, the dollar index recovered from this low after finding support at the 200-day moving average, a development gold bulls should be cautious about.

Geopolitical tensions also provided some support for gold prices. The main focus for this week is the US Core Personal Consumption Expenditures (PCE) Price Index, due on Friday.

Technical Analysis:

Yesterday, gold’s technical performance was volatile, first dipping and then rising. During the Asian and European sessions, gold quickly fell to stabilize around the $2340 mark, entering a horizontal trading pattern.

In the evening US session, gold surged strongly, breaking through and holding above the $2355 mark, and continued to rise to the $2364 level before retreating. Early morning, gold stabilized around $2347 and made a second push, closing at $2360, indicating a small but continued upward trend.

Gold Posts Three Consecutive Daily Gains, WTI Crude Rises Over 2%

Today’s Focus:

  • Short-term strategy: Recommend shorting on rebounds and buying on dips.
  • Resistance: $2370-$2376
  • Support: $2334-$2340

Oil

On Tuesday, the market anticipated that the OPEC+ alliance would continue to limit oil supply in its June 2 meeting. Additionally, ongoing Middle East tensions, the start of the US summer driving season, and a weaker dollar boosted commodities.

WTI crude rose above $80 for the first time in over a week. WTI crude futures settled up 2.71% at $79.83 per barrel, while Brent crude futures settled up 1.35% at $84.22 per barrel.

The dollar fell 0.24% on Monday, hitting its lowest level in over a week. Traders and analysts expect that the OPEC+ meeting on Sunday (June 2) will announce the continuation of the voluntary production cut of 2.2 million barrels per day to support oil prices.

Technical Analysis:

Yesterday, oil prices showed a strong upward rebound after stabilizing around the $78.5 level. In the evening US session, oil prices surged, breaking through both the $79 and $80 levels, closing strongly. The overall price firmly established above the critical $80 mark.

Gold Posts Three Consecutive Daily Gains, WTI Crude Rises Over 2%

Today’s Focus:

  • Short-term strategy: Recommend buying on dips and shorting on rebounds.
  • Resistance: $81-$81.6
  • Support: $78-$78.6

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Disclaimer      
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.

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