Due to reduced concerns about the escalation of tensions in the Middle East, the price of gold rebounded after briefly breaching the USD 2300 level to hit a two-week low, but ultimately closed slightly lower. Investors are awaiting key economic data for more clues about the timing of the Federal Reserve’s interest rate cuts.  

As the US dollar index fell to its lowest level in over a week, investors shifted their focus from Middle Eastern geopolitical issues to the global economic situation. Additionally, a significant decrease in API crude oil inventories provided support for oil prices, which rose by nearly 2%. 

Gold >> 

On Tuesday, concerns about the escalation of tensions in the Middle East eased, causing spot gold in the Asian session to briefly fall below the USD 2300 mark. However, it later rebounded somewhat as the US dollar index softened, ultimately closing down by 0.2% at USD 2321.56 per ounce.  

Investors are awaiting key economic data for more clues about the timing of the Federal Reserve’s interest rate cuts. Iran’s statement last week that it had no plans for retaliation eased concerns in the market about a broader conflict, leading to signs of increased risk appetite in financial markets.  

This suggests that gold, traditionally seen as a safe haven, has lost its appeal. US business activity cooled in April, hitting its lowest level in four months due to weak demand. Despite a significant increase in input prices, inflation rates have slightly decreased, implying that future pressures may ease.  

The Federal Reserve is looking for signs that the economy is slowing enough to further reduce inflation. Yesterday, in volatile trading, gold technically saw a bottom-breaking rebound. In the Asian session, it opened under pressure at the USD 2334 level, quickly fell below the USD 2300 integer level, then rebounded.  

In the afternoon, it surged twice but was suppressed around the USD 2314 level before falling back below the USD 2291 mark, stabilizing and rebounding. In the late US session, it continued to rise, breaking through and staying above the USD 2314 level, marking a strong bullish rebound. Eventually, in the early morning, gold surged rapidly, breaking through the USD 2331 level and closing strongly. 

Technical Analysis: 

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

• Key resistance levels to watch in the short term are around 2335-2340. 
• Key support levels to watch in the short term are around 2300-2295. 

WTI Crude Oil >>    

On Tuesday, as the US dollar index fell to its lowest level in over a week, investors shifted their focus from Middle Eastern geopolitical issues to global economic conditions. Additionally, a significant decrease in API crude oil inventories provided support for oil prices.  

WTI crude oil futures rose by USD 1.46, or 1.8%, settling at USD 83.36 per barrel on Tuesday, while Brent crude oil futures rose by USD 1.42, or 1.6%, settling at USD 88.42 per barrel.

Earlier, a survey by S&P Global showed that US business activity in April cooled to its lowest level in four months due to weak demand, leading to a decline in the US dollar index.  

A decline in the US dollar typically boosts demand for oil priced in other currencies held by investors. Furthermore, despite easing tensions between Israel and Iran, concerns about demand from major oil-importing Asian countries persisted.  

Both benchmark crude oils earlier fell by over USD 1, but the latest developments in Israel still provided some support to oil prices. Investors are also keeping an eye on changes in US crude oil inventories.  

The latest API data showed a decrease of 3.23 million barrels in US crude oil inventories last week, the largest drop in nearly six weeks, boosting confidence among bulls. Investors also await official data from the US Energy Information Administration (EIA) later in the day. 

Yesterday, oil prices experienced a technical rebound after initially declining. In the Asian and European sessions, prices fell below the USD 83 level before rebounding.  

In the late US session, prices quickly fell below the USD 80.9 level before stabilizing and rising. In the late US session, prices continued to rise strongly, breaking through and staying above the early session’s opening gap around USD 83, ultimately closing sharply higher above the USD 83.5 level. 

Technical Analysis: 

Today’s crude oil trading strategy suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks 

• Key resistance levels to monitor in the short term are around 84.5-85.0. 

• Key support levels to monitor in the short term are around 82.0-81.5. 

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